(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Biodiversity Heritage Library | Children's Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Report of the Committee on Energy and Natural Resources to the Committee on the Budget, United States Senate, pursuant to section 301© of the Congressional Budget and Impoundment Control Act of 1974"

Y'/, 



op 



95th Congress 
2d Session 



COMMITTEE PRINT 



t li>W»'^ 



/& 



REPORT^ I A pR 



*<& 



1918 



V s9 

OF THE' 



: * .f 









COMMITTEE O^J^milJ^ 
ENERGY AND NATURAL REsSffl&ES 



TO THE 



COMMITTEE ON THE BUDGET 
UNITED STATES SENATE 



PURSUANT TO 



SECTION 301(c) OF THE CONGRESSIONAL BUDGET 
AND IMPOUNDMENT CONTROL ACT OF 1974 



FISCAL YEAR 1979 




MARCH 1978 



Publication No. 95-95 



Printed for the use of the 
Committee on Energy and Natural Resources 



24-427 



U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1978 



COMMITTEE ON ENERGY AND NATURAL RESOURCES 

HENRY M. JACKSON, Washington, Chairman 



FRANK CHURCH, Idaho 
J. BENNETT JOHNSTON, Louisiana 
JAMES ABOUREZK, South Dakota 
FLOYD K. HASKELL, Colorado 
DALE BUMPERS, Arkansas 
WENDELL H. FORD, Kentucky 
JOHN A. DURKIN, New Hampshire 
HOWARD M. METZENBAUM, Ohio 
SPARK M. MATSUNAGA, Hawaii 
WENDELL R. ANDERSON, Minnesota 
JOHN MELCHER, Montana 



CLIFFORD P. HANSEN, Wyoming 
MARK O. HATFIELD, Oregon 
JAMES A. McCLURE, Idaho 
DEWEY F. BARTLETT, Oklahoma 
LOWELL P. WEICKER, Jr., Connecticut 
PETE V. DOMENICI, New Mexico 
PAUL LAXALT, Nevada 



Grenville Garside, Staff Director and Counsel 

Daniel A. Dreyfus, Deputy Staff Director for Legislation 

D. Michael Harvey, Chief Counsel 

Richard D. Grundy, Senior Professional Staff Member 

Russell R. Brown, Professional Staff Member 

W. O. Craft, Jr., Minority Counsel 

Charles Trabaxdt, Professional Staff of the Minority 

Thomas Imeson, Professional Staff of the Minority 

(II) 



LETTER OF TRANSMITTAL 



U.S. Senate, 
Committee on Energy and Natural Resources, 

Washington, D.C., March 15, 1978. 
Hon. Edmund S. Muskie, 
Chairman, Senate Budget Committee, 
Washington, B.C. 

Dear Mr. Chairman : Enclosed is the report of the Senate Com- 
mittee on Energy and Natural Resources to the Senate Budget Com- 
mittee regarding fiscal year 1979 as required by section 301(c) of the 
Congressional Budget Act. In preparation for this report, the com- 
mittee reviewed the proposed budget submitted by the Administration. 
Several days of hearings also were held. The committee then formally 
reviewed and approved the recommendations contained herein. 

The report, where appropriate, follows the format and instructions 
suggested in your letter of February 3, 1978. Where special considera- 
tions of the programs within this committee's jurisdiction require 
deviations from your suggested format, explanations are provided. 
This report identifies budgetary authorities and outlays which, in 
the committee's judgment, are necessary to achieve stated national 
program goals. The committee's recommendations reflect anticipated 
enactment of conference agreements on energy legislation associated 
with the proposed National Energy Act, in particular, the coal 
utilization, energy conservation, utility rate reform and natural 
gas pricing bills. All these programs will be reviewed prior to committee 
action on the fiscal year 1979 annual authorization bill for the Depart- 
ment of Energy. This may necessitate adjustments in the second 
budget resolution to reflect subsequent energy actions by the Congress. 
As in the past, we look forward to continued coordination between 
our committee and the Budget Committee as the session progresses. 
We will keep you advised of legislative developments which have 
budgetary significance. 

The staff of the Energy and Natural Resources Committee will 
be glad to assist your staff by providing any supplemental information 
necessary for your work. 
Sincerely, 

Henry M. Jackson, 

Chairman. 
Clifford P. Hansen, 
Ranking Minority Member. 
(in) 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/commreso1979unit 



PREFACE 



Section 301(c) of the Congressional Budget Act (Public Law 93- 
344), requires all standing committees in each House of the Congress 
to submit an annual report to the Budget Committee of their respec- 
tive House. This annual report is due on or before March 15 of each 
year. The report of each committee is to contain — 

(1) Comments on the general economic setting for the coming 
fiscal year with respect to the committee's major areas of 
jurisdiction; 

(2) A description of the programs and activities within the 
committee's oversight jurisdiction and an analysis of the budget 
and revenue aspects of these programs and activities for the 
coming fiscal year; 

(3) A description of the new programs and major program 
changes initiated in areas of jurisdictional responsibility of the 
committee ; 

(4) Estimates of the new budgetary authority and budget 
outlays required by these programs for the current and coming 
fiscal year; 

(5) Estimate of the budgetary impact of the legislative pro- 
posals of the President which fall into the area of jurisdictional 
responsibility for the committee ; and 

(6) Comments on the budget estimates of the President for 
those programs already authorized for all or part of the coming 
fiscal year or for which authorization can be reasonably expected 
to continue without major changes. 

This committee print contains the report of the Committee on 
Energy and Natural Resources of the U.S. Senate, submitted to the 
Senate Budget Committee on March 15, 1978. The committee hopes 
that this document will prove a useful source of information for 
persons seeking to understand the operation and budgetary impact 
of the Federal programs and new activities which come under the 
jurisdiction of the Committee on Energy and Natural Resources. 
Sections 301(a) and 301(c) of the Congressional Budget Act are 
reprinted below. 



Sections 301(a) and 301(c) of the Congressional Budget Act 

Sec. 301(a). Action To Be Completed by May 15. — On or before 

May 15 of each year, the Congress shall complete action on the first 

concurrent resolution on the budget for the fiscal year beginning on 

October 1 of such year. The concurrent resolution shall set forth — 

(1) the appropriate level of total budget outlays and of total 

new budget authority; 

(V) 



VI 

(2) an estimate of budget outlays and an appropriate level 
of new budget authority for each major functional category, for 
contingencies, and for undistributed intragovernmental trans- 
actions, based on allocations of the appropriate level of total 
budget outlays and of total new budget authority; 

(3) the amount, if any, of the surplus or the deficit in the 
budget which is appropriate in light of economic conditions and 
all other relevant factors ; 

(4) the recommended level of Federal revenues and the amount, 
if any, by which the aggregate level of Federal revenues should 
be increased or decreased by bills and resolutions to be reported 
by the appropriate committees; 

(5) the appropriate level of the public debt, and the amount, 
if any, by which the statutory limit on the public debt should 
be increased or decreased by bills and resolutions to be reported 
by the appropriate committees; and 

(6) such other matters relating to the budget as may be ap- 
propriate to carry out the purposes of this act. 
******* 

Sec. 301(c). Views and Estimates of Other Committees. — On or 
before March 15 of each year, each standing committee of the House 
of Representatives shall submit to the Committee on the Budget of 
the House, each standing committee of the Senate shall submit to the 
Committee on the Budget of the Senate, and the Joint Economic 
Committee and Joint Committee on Internal Revenue Taxation shall 
submit to the Committees on the Budget of both Houses — 

(1) Its views and estimates with respect to all matters set forth 
in subsection (a) which relate to matters within the respective 
jurisdiction or functions of such committee or joint committee; 
and 

(2) Except in the case of such joint committees, the estimate of 
the total amounts of new budget authority, and budget outlays 
resulting therefrom, to be provided or authorized in all bills and 
resolutions within the jurisdictions of such committee which such 
committee intends to be effective during the fiscal year beginning 
on October 1 of such year. 

The Joint Economic Committee shall also submit to the Committees 
on the Budget of both Houses, its recommendations as to the fiscal 
policy appropriate to the goals of the Employment Act of 1946. Any 
other committee of the House or Senate may submit to the Committee 
on the Budget of its House, and any other joint committee of the 
Congress may submit to the Committees on the Budget of both 
Houses, its views and estimates with respect to all matters set forth in 
subsection (a) which relate to matters within its jurisdiction or 
functions. 






CONTENTS 



Page 

Letter of transmittal in 

Preface v 

I. Overview 1 

A. General 1 

B. Energy 3 

C. Natural resources and environment 7 

D. General sciences, space and technologv 10 

E. Other 1C 

F. Revenue aspects of the programs 12 

G. Direct spending jurisdiction 14 

II. Major program areas 15 

A. Department of Energy 15 

1. Departmental operations 15 

2. Energy supply — Research and development 15 

3. Energy supply — Production, demonstration and 

distribution 19 

4. Power marketing administrations 22 

5. Energy conservation 23 

6. Environment 25 

7. Emergency energy preparedness 27 

8. Emergency energj- preparedness — Strategic reserves. 27 

9. Energy information and regulation 28 

10. Basic sciences 31 

11. Defense atomic energy activities 31 

12. Summary 31 

B. Department of the Interior 33 

1. Advisory Council on Historic Preservation 33 

2. Bureau of Land Management 33 

3. Bureau of Mines 41 

4. Bureau of Reclamation 43 

5. Heritage Conservation and Recreation Service 46 

f). National Park Service 50 

7. National Petroleum Reserve in Alaska 51 

8. Office of Surface Mining Reclamation and Enforce- 

ment 54 

9. Pennsylvania Avenue Development Corporation 55 

10. Territories 56 

11. U.S. Geological Survev 63 

12. Summary 64 

C. Department of Agriculture 66 

1. U.S. Forest Service 66 

D. Other 72 

1. National Science Foundation — Polar programs 72 

III. Legislative action items 73 

A. Energy 73 

B. Natural resources and environment 79 

C. Other 88 

Appendix — Summary of Treasury Account Numbers 91 

(VII) 



I. OVERVIEW 

A. General 

The Committee on Energy and Natural Resources in its analysis of 
the President's proposed budget for fiscal year 1979, formulated the 
views and recommendations contained herein with consideration to 
(1) emerging national needs and priorities, (2) effective maintenance 
of ongoing programs of proven importance, and (3) the requirement 
for strict fiscal responsibility. The greatest possible emphasis was 
placed upon economic and fiscal restraint. Estimates of the budgetary 
impact of new legislative authorizations therefore are conservative. 

The committee's views and recommendations on budgetary matters 
within its areas of sole and shared jurisdiction are presented in sum- 
msLry by Federal budgetary function and subfunction. The commit- 
tee's principal programmatic responsibilities fall within the two 
budgetary functions: Energy (270) and Natural Resources and Envi- 
ronment (300) ; and the two additional subfunctions of Atomic Energy 
Defense Activities (053) and General Science and Basic Research 
(251). Additional committee responsibilities fall within Community 
and Regional Development (450), General Government (800), Reve- 
nue Sharing and General Purpose Fiscal Assistance (850), and Trans- 
portation (400). 

The fiscal year 1979 estimates and recommendations of the Com- 
mittee on Energy and Natural Resources by Federal budgetary sub- 
functions and functions are shown in the table on the next page. 
Projections of budget authority and outlays for fiscal years 1980 
through 1983 are treated as comparable for the purpose of this report. 
The detailed discussion of budgetary authority and outlays is orga- 
nized by major program area to reflect subcommittee responsibilities. 
See Appendix for a summary of the Treasury account numbers con- 
sidered by the committee for each functional area. 

This report recognizes the progress of work of the Senate-House 
conference on the legislative proposals contained in the 1977 National 
Energy Act, and the recommendations include 1979 budgetary esti- 
mates which reflect the conference agreements reached to date. (The 
President's budget requests for the most part are based on the National 
Energy Act as originally proposed by the Administration.) 

The committee will, of course, continue to review the programs in- 
volved in its consideration of the fiscal year 1979 authorization bill for 
the Department of Energy and other authorizations bills required and 
may have more precise analyses available for the final markup of those 
measures. 

As the report was being prepared, several comments in testimony 
by representatives of the Administration implied that a "second 
phase" to the President's National Energy Plan is under active 
consideration. Because there presently is no substantive information 
concerning these potential administrative or legislative proposals, 
they are not reflected in this committee's estimates and recommenda- 
tions. To the extent that the new proposals are inconsistent with the 

(1) 



2 

SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTION 
|ln millions of dollars) 

Budget authority Outlays 

President's Committee President's Committee recommendation 

budget, recommen- budget, — ■ 

1979 dation, 1979 1979 1979 1980 1981 1982 

National defense (050): 

Navy construction (051) 821 864 547 590 500 507 543 

Atomic energy defense ac- 
tivities (053) 2,829 2,829 2,536 2,536 2,783 3,025 3,261 

Total defense activities.. 3,650 3,693 3,083 3,126 3,283 3,532 3,804 
General science, space and tech- 
nology (251): 
General science and basic re- 
search (251) 477 487 466 476 489 500 530 

Energy (270): 

Energy supply (271) 3,586 4,887 3,577 4,427 4,700 5,200 5,700 

Energy conservation (272).... 1,010 1,197 902 1,052 1,247 930 637 
Emergency energy prepared- 
ness (274) 4,255 4,255 3,285 3,285 2,854 1,076 2,404 

Energy information, policy 
and regulation (276) 675 748 623 673 741 748 733 

Total, energy 9,526 11,058 8,386 9,436 9,542 7,954 9,474 

Natural resources and environ- 
ment (300): 
Water resources and power 

(301) 616 727 605 705 893 950 1,012 

Conservation and manage- 
ment (302) 1,385 1,580 1,280 1,375 1,500 1,550 1,600 

Recreational resources (303).. 1,350 2,110 1,145 1,532 1,800 2,000 2,200 

Other natural resources (306). 121 123 128 129 130 135 140 

Total, natural resources 
and environment 

Transportation (400): 

Ground transportation (401) 

(railroad rehabilitation) 

Water transportation (403)... 

Total, transportation 

Community and regional develop- 
ment (450): 
Community development 
(451) 

Regional development (452).. 

Total community and re- 
gional development 

General government (800): 

General activities (804) 

Other general government 
(806) 

Total, general government. 

Revenue sharing and general 

purpose fiscal assistance (850): 

Fiscal assistance (852) 

Total, Energy and Natural 
Resources Committee.... 17,883 20,893 15,841 17,868 18,321 17,365 19,571 



1983 



587 
3,520 



4,107 



570 



6,000 
615 



2,345 
666 



9,626 



1,080 

1,690 

2,400 

145 



3, 929 


5,001 


3,612 


4,197 


4,323 


4,635 


4,952 


5,315 




100 ... 
3 


.. 


100 
3 


120 
7 


140 
7 


160 
8 


180 


3 


8 


3 


103 


3 


103 


127 


147 


168 


188 


27 


35 
1 


34 
1 


39 
1 


45 

1 


20 


10 

1 


5 


1 


1 


28 


36 


35 


40 


46 


21 


11 


6 


8 
157 


8 
362 


8 

144 


8 

294 


8 
350 


8 
400 


8 

450 


8 

500 






165 
105 


370 
145 


151 
105 


301 
145 


358 
158 


408 
168 


458 
174 


508 
180 



20, 500 



actions already anticipated by the Congress, the incorporation in the 
fiscal year 1979 budget may present significant difficulties both in the 
authorization and the appropriation processes. 

Furthermore, this committee was disturbed by testimony and in- 
formal comments of Administration officials indicating that the 
President's proposed budget has consciously underfunded various 
programs in the expectation of submitting major "supplemental" 
appropriations requests later in fiscal year 1979. To the extent that 
the committee has discovered such inadequacies in the proposed 



budget, this report recommends that the First Concurrent Budget 
Resolution for fiscal year 1979 and the relevant authorization and 
appropriations acts provide for adequate funding at this time. 

The sizeable increases recommended by the committee are, to a 
significant extent, occasioned by anticipated "supplemental" budget 
requests which will be necessary to carry out program activities 
currently anticipated by the Executive Branch, but not fully provided 
for in the President's proposed budget for fiscal year 1979. 

The Budget Committee may wish to give its serious attention to 
this practice of deferring funding requests into "supplemental" appro- 
priations measures. The adverse effects upon the budgetary process of 
such an approach are self-evident. 

The Congressional process of annual authorizations and the First 
Concurrent Budget Resolution cannot be effective or rational if major 
policy decisions which will impact on the current and next fiscal year 
are habitually withheld by the Administration until initial budget 
decisions have been completed by the Congress. 

This committee last year was forced to deal with the budget impacts 
of the Administration's National Energy Act and Plan submitted in 
early May, and a Nuclear Non-Proliferation Budget Amendment 
submitted in mid-May. The resulting actions of the committee re- 
auired a number of budget waivers. These actions also became the 
subject of correspondence from the leadership of the Budget Com- 
mittee encouraging this committee to make every effort to meet the 
Budget Act deadlines for reporting legislation with fiscal year 1978 
budget impact. Every effort has been made to satisfy that request, 
but it is possible that again pending Administration initiatives in 
energy may be submitted after the Budget Act otherwise contemplates 
normal submission and consideration by this committee. 

B. Energy 

Energy (270) 

Since Senate recognition in 1970 of an emerging energy crisis and 
the subsequent interdiction of international oil supply in 1973, 
major policy initiatives have been taken by the Congress toward 
formulation of a comprehensive National Energy Policy. Significant 
program authorizations were provided in the areas of energy research 
and development, petroleum pricing and allocation, contingency 
planning for shortages or embargoes, loan guarantees for synthetic 
fuels, energy conservation, and increased domestic energy production. 

After the commencement of the 95th Congress, on April 20, 1977, 
President Carter proposed a National Energy Plan formulated with 
the objectives of reducing our increasingly critical dependence upon 
diminishing supplies of oil and gas, encouraging conservation of scarce 
energy resources, stimulating conversion to more abundant fuels, and 
reducing our large trade deficit. The President's proposals incorporated 
several major energy policy initiatives already under consideration by 
the Congress in the areas of energy conservation, greater coal utiliza- 
tion, management of the Outer Continental Shelf, natural gas pricing, 
surface mine control and reclamation, and utility rate reform. Many 
of the individual legislative proposals were identified in this commit- 
tee's March 15, 1977, report to the Senate Committee on the Budget. 



The Senate-House conference on the National Energy Plan legisla- 
tion is n earing completion of consideration of several measures with 
significant potential fiscal year 1979 budgetary implications. The 
fiscal year 1979 budget reflects recent establishment of the Department 
of Energy to consolidate Federal energy programs. In further recogni- 
tion of the vital nature of energy to the United States future security 
the committee endorses creation of the new budgetary function 
exclusively relating to "Energy." This report addresses national 
energy needs within the following major subf unctions : energy con- 
servation ; energy supplies ; emergency energy preparedness ; and energy 
information, policy, and regulation. 

The committee recommends that total budgetary authority for 
the Energy function be increased by $1,531 million above the Pres- 
ident's proposed budget of $9.5 billion. 

Included within the function Energy are activities of the Depart- 
ment of the Interior concerning the National Petroleum Reserve in 
Alaska. Exploration of the reserve is a major undertaking which will 
require persistence and sustained effort. The committee's overall esti- 
mate for the En erg v function would increase the President's proposed 
budget of $186 million for fiscal year 1979 by $66,452,000 for this 
program area. 

The Committee on the Budget should be aware that it is antici- 
pated that the President will propose further legislative initiatives 
with fiscal year 1979 budgetary implications which cannot be evaluated 
at this time. These may need to be accommodated at a later stage 
in^the budgetary process. 

Energy Supply {271) 

For the subfunction of Energy Supply the President's proposed 
budget for fiscal year 1979 would authorize $3,586,000,000. This sub- 
function includes the major Department of Energy program areas of 
(a) research and development; (b) production, demonstration, and 
distribution; and (c) power marketing administrations. As set forth 
subsequently the committee estimates an $1,271,000,000 increase 
in budget authority for this subfunction. 

Energy Conservation {272) 

For the subfunction of Energy Conservation the President's pro- 
posed budget for fiscal year 1979 would authorize $1,010,000,000. The 
committee estimates $187 million increase in budget authority for this 
subfunction. 

Emergency Energy Preparedness {274) 

For the subfunction of Emergency Energy Preparedness the Presi- 
dent's proposed budget would authorize $4,255,000,000. The principal 
program area is strategic reserves. The committee supports the pro- 
posed allocation of Energy function resources to this subfunction and 
does not recommend any change at this time. 

Energy Information, Policy and Regulation {276) 

For the subfunction of Energy Information, Policy, and Regula- 
tion the President's proposed budget for fiscal year 1979 would author- 
ize $675,000,000. This subfunction includes the Federal Energy 
Regulatory Commission. The committee recommends an $73 million 
increase in budget authority for this subfunction. 



SUMMARY OF COMMITTEE ESTIMATES BY FUNCTION AND SUBFUNCTION 
[In millions of dollars! 

Budget authority Outlays 



1979 1979 Commit- 1979 1979 Commit- 

President's tee recom- President's tee recom- 

budget mendation budget mendation 



3, 586 


4,857 


3,576 


4,427 


1,010 


1.197 


902 


1,052 


4,255 


4,255 


3,285 


3,285 


675 


748 


623 


673 



Energy (270): 

Energy supply (271) 

Energy conservation (272) 

Emergency energy preparedness (274) 

Energy information, policy, and regulation (276). 

Total 9,526 11,057 8,386 9,437 



LOAX GUARANTEE PROGRAMS FOR ENERGY DEVELOPMENT 

In Public Law 95-238, the Congress authorized the Secretary of 
Energy to initiate a demonstration program of synthetic fuels and 
alternative energy source development through Federal guarantees of 
private loans. This authority requires (1) for individual undertakings 
which are not over $50 million total cost, that the Secretary obtain a 
line item approval in an appropriations act prior to making commit- 
ments; and (2) for undertakings in excess of $50 million of total cost, 
that the Secretary obtain specific statutory authorization prior to 
making individual project commitments. 

This law also includes new statutory authority for establishment of a 
financial support program for municipal waste reprocessing demonstra- 
tion facilities, which includes price supports. Also, the Federal Non- 
nuclear Energy Research and Development Act of 1974 and the 
Energy Conservation and Production Act of 1976 authorize various 
price support, price guarantee and other loan guarantee authorities 
for synthetic fuels and renewable resources. 

No projects relying upon this authority have been included in the 
President's budget for fiscal year 1979. The committee, however, may 
wish to consider authorization of one or more major items in this 
annual authorization act. Furthermore, the administration has testi- 
fied that it may recommend participation in such projects through loan 
guarantees, price supports or both in the immediate future. 

As this committee understands the situation, it would be possible 
for the Appropriations Committees to recommend approval of loan 
guarantees for projects of less than $50 million each or for this com- 
mittee to authorize loan guarantees in excess of $50 million each with- 
out any budget authority impact insofar as the pending budget resolu- 
tions are concerned. 

If, however, the administration should propose to establish a fund 
to insure the payment of possible defaults on guaranteed loans or if 
the administration should recommend a program of price supports or 
guaranteed purchases, a budgetary impact in fiscal year 1979 might 
result. 

Inasmuch as any aggressive demonstration program in synthetic 
fuels technologies could involve investments of several billions of 
dollars, the budgetary approach will be of great importance. This com- 
mittee has assumed that any action taken during this session of the 
Congress would involve only existing loan guarantee authority and 
that no budgetary impact will be involved during fiscal year 1979. 



PERSONNEL POLICIES 

The committee paid particular concern to the personnel levels and 
the personnel allocations among the programs within its jurisdiction. 
The allocation policies for personnel within the new Department of 
Energy poses a potential problem. Several of the operational programs 
have been denied authority by the Department to fill obviously 
essential positions. At the departmental level, however, there is a 
large block of positions for budgetary purposes which are not related 
to any identifiable program authority. 

In view of the restrictions imposed by the Department of Energy 
Organization Act, it seems unlikely that the Department as a whole is 
overstaffed. For this reason the committee will be making further 
inquiries into this situation, and may wish to influence the allocation 
of these positions to identifiable program areas in the fiscal year 1979 
authorization bill for the Department. 

CLINCH RIVER BREEDER REACTOR 

The determination of the appropriate fiscal year 1979 program for 
the Clinch River Breeder Reactor (CRBR) involves a significant 
policy decision concerning continuation or termination of the CRBR. 
Additional hearings by the committee will be necessary to determine 
this committee's formal recommendations on the issue. 

The recommendations contained in this report do not prejudge the 
outcome of the decision. Whether the Congress will decide to termi- 
nate or continue the project in fiscal year 1979 is unclear. In either 
event, an authorization and appropriation of approximately $200 
million may be required for fiscal year 1979. A program of $200 
million is recommended for the CRBR for fiscal year 1979. The com- 
mittee believes this is the order of magnitude of the program which 
would need to be authorized to continue the project. Furthermore, if 
the President's proposed termination of the project were agreed to by 
the Congress, appropriations of the same order of magnitude may be 
required to repay the utilities for their contribution to the CRBR, 
to pay termination costs on existing contracts in order to avoid or 
minimize lawsuits against the Federal Government, and to pay suc- 
cessful legal claims arising from termination. 

EPA-DOE PROGRAM TRANSFER 

The President's fiscal year 1979 budget proposes transfers of certain 
environmental research and development programs from the Depart- 
ment of Energy (DOE) to the Environmental Protection Agency 
(EPA). In addition, transfers of other programs from EPA to DOE are 
proposed. These transfers are inconsistent with the agreement arrived 
at among the Congressional committees with jurisdiction over these 
two agencies as reflected in the enabling legislation for the Department 
of Energy. 

In this report, the committee recommends the restoration in the 
Department of Energy budget of funding for programs which have 
been in the Department heretofore. The Committee has not recom- 
mended deletion of funding for programs transferred to the Depart- 
ment from the Environmental Protection Agency, because these are 
important programs that must be supported. During Congressional 
consideration of authorizing legislation for these two agencies, 
coordination among the committees of jurisdiction will eliminate any 
duplication of funding. 



C. Natural Resources and Environment 

Current with heightened attention to national energy problems, 
congressional concern focused on issues surrounding Federal natural 
resources, and parks and recreational programs. 

Within the function Natural Resources and Environment the Presi- 
dent's proposed budget for 1979 would authorize $3,928,776,000 for 
program areas within the jurisdiction of the committee. As discussed 
subsequently, the committee recommends a $1,072,059,000 increase in 
budgetary authority for this function as noted in the table. The major- 
ity of the proposed increases are to reflect anticipated supplemental 
budget requests from the Administration. 

SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTI0N 
[In thousands of dollars] 



Budget authority 



1979 
Presi- 
dent's 
budget 



1979 
Committee 
recom- 
mendation 



Outlays 



1979 
Presi- 
dent's 
budget 



1979 
Committee 
recom- 
mendation 



Natural resources and environment (300): 

Water resources and power (301): Bureau of 

Reclamation _ . 615,720 

Conservation and management (302): 

Forest Service 

Bureau of Land Management.. 

Office of Surface Mine Reclamation and En- 
forcement 

Recreational resources (303): 

U.S. Forest Service 

Corps of Engineers. 

Bureau of Reclamation 

Advisory Council on Historic Preservation 

Heritage Conservation and Recreation Service. . 

National Park Service... 

Other natural Resources (306): 

Bureau of Mines 

Office of the Sol icitor— Office of the Secretary . . . 

U.S. Geologic Services. 

Total, natural resources and environment 3, 928, 776 



726, 720 



604, 540 



5,000,835 3,611,687 



704, 540 



893, 631 
383, 024 


1,031,104 
432, 163 


831,781 
378, 780 


880, 107 
419, 052 


108, 620 


117,120 


69, 870 


75, 870 


19,545 


42, 545 
3,300 
4,025 
2,000 
1, 382, 033 
676, 965 


18, 875 
3,500 
3,510 
1,481 
632, 480 
484, 891 


33, 875 


3,300 

4, 025 

1,553 

836, 533 

484, 965 


3,500 

3,510 

1,881 

984, 480 

505, 041 


121,329 

58, 168 

398, 363 


123,229 

58, 168 

401, 463 


127, 975 

60, 166 

393, 838 


128, 975 

60, 166 

395, 838 



4, 196, 835 



RENEWABLE RESOURCES 

In recent years, a heightened interest in the renewable resources on 
national forest and national resource (Bureau of Land Management) 
lands has developed. Numerous executive branch reports, including 
the 1973 Report of the President's Advisory Panel on Timber and the 
Environment, the 1975 BLM Range Condition Report, and the 1976 
Forest Service Forest and Rangeland Renewable Resource Assess- 
ment, have disclosed that the productivity of the Nation's forest and 
range lands is relatively low and the quality of a significant portion 
of these lands is declining. In short, the statutory goal of "sustained- 
yield" management has not been fully realized. 

Judicial attention to renewable resources has also increased. Recent 
Federal court decisions have called into question certain traditional 
timber-cutting and range management techniques and required more 
thorough multiple-use planning and environmental and social impact 
analysis as prerequisites to decisions affecting renewable resources on 
the public lands. 

Congressional attention to public land renewable resources issues 
predates the work of the executive and judicial branches. Beginning 



8 

with the enactment of legislation creating the Public Land Law 
Review Commission in 1964 and continuing for over a decade there- 
after, the Congress undertook, and commissioned, numerous studies. 
This study phase concluded in the 93d Congress with: (1) the enact- 
ment of the Forest and Rangeland Renewable Resources Planning 
Act which provides for a continuing program of stud}' and planning 
of public land renewable resources, and (2) the 1974 request of the 
Senate Appropriations Committee for, and the 1975 submission of, 
the BLM Range Condition Report. In 1976 the Congress moved to 
the authorization stage by enacting or beginning work on several 
significant public land management measures. The Federal Land 
Policy and Management Act of 1976 and the National Forest Man- 
agement Act of 1976 were enacted into law and the National Range- 
lands Policy Act was passed by the Senate. Each of these measures 
had as one of its principal purposes the mandating of more effective 
renewable resources planning and management and the authorizing of 
sufficient funding to achieve that purpose. 

This Congressional activity is based on two premises: (1) our public 
land renewable resources are not being fully utilized, the productivity 
of such resources is unnecessarily low, and far too high a percentage 
of our Federal lands devoted to such resources continues to deteriorate; 
and (2) management and rehabilitation programs for renewable re- 
sources yield long-term benefits commensurate with or in excess of 
their costs. Evidence that these premises are accurate is provided by 
the numerous executive branch reports previously cited. For example, 
the 1975 BLM Range Condition Report, presents an alarming picture 
of the condition of the BLM rangelands. According to the report only 2 
percent of the BLM rangelands is in excellent condition, another 28 
percent is in poor condition, and 5 percent is in bad condition. Further- 
more, the report discloses that 16 percent of the range continues to 
decline. The report outlines a 20-year range rehabilitation program 
which would need an additional average annual appropriation of $45 
million. Although this cost is considerable, the report notes that total 
benefits in increases in forage production for domestic livestock, en- 
hancement of wildlife habitat, protection of watersheds, and reduction 
of salinity in the Colorado River would total approximate^ $125 
million annually. Timber and range management programs, wildlife 
habitat enhancement programs, land and water stewardship programs, 
and programs designed to enhance developed and dispersed recreation 
on the public lands are examples of the critically needed and highly 
cost-effective resource management opportunities which should be 
encouraged. 

Fiscal year 1979 is a crucial budget year for public land renewable 
resources management. The period of study is over and, with the ex- 
ception of the National Rangelands Policy Act, the authorizing legis- 
lation has been enacted. While the study and legislative efforts have 
not required significant budgetary outlays, implementation of the more 
costly study recommendations and statutory mandates will require a 
significant increase in funding levels. In order to meet the sudden and 
severe demands resulting from the energy crisis, recent budgets have 
emphasized the non-renewable resources over the renewable resources. 
Although the fiscal year 1979 budget must continue to place sub- 
stantial funds in energy-related public land programs, no significant 
additional increases in these budget categories appear necessary. This 



9 

leveling-off of energy-related funding needs would permit a modest 
shift in budgetary emphasis to renewable resources at exactly the 
time when the Federal government stands ready to translate its 
concern over the condition of these resources into action to preserve , 
rehabilitate, and more intensively use them. 

CRITICAL PERSONNEL REQUIREMENTS 

As this committee has reported in prior years, the natural resources 
programs are chronically undermanned throughout the Department 
of the Interior. Specific deficiencies and the impacts are noted in this 
report. 

As the committee stated in last year's report, personnel ceilings 
have become a new means of budgetary constraint. Despite the 
policies set forth in the Congressional Budget Act, the Administration 
has effectively limited the levels of activity in many program areas by 
limiting personnel assigned to such areas. Without some relief from 
personnel ceilings, increases in appropriations often cannot be effec- 
tively used. It may be necessary for the Congress to take a more direct 
role in the allocation of personnel positions among program areas. 

To meet the renewable resource mandates of the recently enacted 
public land laws, several increases in BLM and U.S. Forest Service 
budget categories are recommended. 

These proposed funding increases, however, will not be fully effectual 
without concomitant increases in personnel levels in these and other 
Federal land management agencies. The lack of human resources to 
even properly stabilize public land conditions and maintain their 
existing low-level productivity and presently diminished quality is 
a national embarrassment. The increasing reliance of Federal land 
management agencies on temporary personnel and contracting author- 
ity not only inhibits control of the quality of work performed but also 
significantly increases its cost, thus reducing the effectiveness of what- 
ever funding renewable resources do receive. The fiscal year 1979 
budget request would continue this recent trend of accommodating only 
a minimum number of permanent positions and relying instead upon 
temporary personnel and contracting to accomplish the public land 
management agencies' workload. 

For example, the fiscal year 1979 budget request for the BLM 
includes funds for 155 positions which are shown as full time permanent 
and 1,210 shown as other than permanent. Many of these would have 
been permanent positions if adequate ceilings had been available. 
This is consistent with ceiling limitations imposed during the last 
several years. Fifty percent of the total obligations of the major BLM 
appropriations — Management of Land and Resources — in fiscal year 
1977 involved temporary salaries and contracts; seven years ago these 
two categories accounted for only 16 percent of the total obligations 
incurred. This committee firmly believes the proportion of work 
accomplished by permanent staff in 1971 should be restored. 

Forest Service program responsibilities have been consistently 
increasing with very small increases in permanent staffing. For ex- 
ample, the Forest Service's Forest Protection and Utilization appro- 
priation for fiscal year 1978 was approximately $240 million above the 
President's fiscal year 1978 budget request. Most of the increases 
were in programs requiring significant numbers of additional per- 

24-427—78 2 



10 

sonnel. To fulfill its land management responsibilities, the Forest 
Service estimates that 30,075 other than full-time and 22,375 per- 
manent full-time employees will be needed in fiscal year 1978. Of the 
30,075 other than full-time employees 7,700 are substantially full-time 
employees who should be full-time if personnel ceilings were available. 

The following committee recommendations for increases in various 
budget categories over the amounts requested by President Carter in 
the fiscal year 1979 budget proposal are based on the assumption that 
personnel ceilings will be increased to insure that fulltime employees 
conduct the activities which the increases would fund. 

D. General Sciences, Space and Technology 

In order to better address the United States national energy needs 
the Department of Energy undertakes general science and basic 
research; for example, research in high energy and nuclear physics, 
as well as life sciences. Such programs of the Department are sup- 
portive of the agencies energy missions and programs, as the com- 
mittee intends. 

The committee fully supports such efforts to expand basic scientific 
knowledge and our understanding of the Earth. In addition to the 
polar programs of the National Science Foundation, the President's 
proposed budget for fiscal }"ear 1979 would authorize $426 million in 
the subf unction General Science and Basic Research (251) for pro- 
grams of the Department of Energy with emphasis on critical national 
energy problems. The committee, as discussed subsequently, esti- 
mates a $10,000,000 increase for this subfunction. 

SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTION 
[In thousands of dollars] 

Budget authority Outlays 



1979 1979 Commit- 1979 1979 Commit- 

President's tee recom- President's tee recom- 

budget mendation budget mendation 



General science, space, and technology (250): General 
science and basic research (251) 477,000 487,000 465,500 475,500 



E. Other 

Within the jurisdiction of the committee are several program areas 
which are not reflected in the aforementioned functional discussions. 
The affected functional areas (see table) include National Defense 
(050), Community and Regional Development (450), General Gov- 
ernment (800), and Revenue Sharing and General Purpose Fiscal 
Assistance (850). 

RAILROAD REHABILITATION 

The conference agreement on II. R. 5146 as approved would author- 
ize an addition of $100 million to the Railroad Rehabilitation Fund 
for the rehabilitation of branch railroad lines to transport coal and 
coal products. The committee recommends full funding in fiscal year 
1979 of this program which would be in the Transportation function 
(400). 



11 



SUMMARY OF COMMITTEE RECOMMENDATIONS BY FUNCTION AND SUBFUNCTION 
[In thousands of dollars] 



Budget authority 



Outlays 



1979 1979 Commit- 1979 1979 Commit- 

President's tee recom- President's tee recora- 

budget mendation budget mendation 



National defense (050): 

Navy construction (051) 820,900 853,900 

Atomic energy defense activities (053) 2, 829, 083 2, 829, 083 

Total, defense activities: 3, 649, 983 3, 692, 983 

Transportation (400): 

Ground transportation railroad rehabilitation 100, 000 

Water transportation (403) 3,000 3,000 

Total, transportation (400) 3,000 103,000 

Community and regional development (450): 
Community development (451): 

Pennsylvania Avenue Development Corporation. 27,285 34,500 

Area and regional development (452): 

Alaska Planning Commission 1,025 1,025 

Total, Community and regional development 

General government (800): 

General activities (804) 

Other general government (806) 

Total, general government 

Revenue sharing and general purpose fiscal assistance 
(850): 
Other general purpose fiscal assistance (852): 

Bureau of Land Management 105,000 145,000 



547, 000 
2,535,833 



3,082,833 



3,000 

34, 085 
1,246 



105, 000 



590, 000 
2,535,833 



3,125,833 



100,000 

3, 000 3, 000 



103, 000 

39, 085 
1,246 



28, 310 


35, 525 


35, 331 


40, 331 


7, 549 
157, 434 


7,549 
362, 224 


7,549 

143, 700 


7,549 
293, 700 






164, 983 


369, 773 


151, 249 


301, 249 



145, 000 



HOUSING AND URBAN DEVELOPMENT 

The Senate-House conference on National Energy Act legislation 
has approved several major energy conservation programs to be ad- 
ministered by the Department of Housing and Urban Development, 
which are not incorporated in these budgetary recommendations. At 
this time, it is unclear whether the affected budgetary functions will 
be Energy (270) or Community and Regional Development (450). In 
summary, the conference agreement would authorize the Government 
National Mortgage Association to purchase (a) up to $3 billion in 
energy conservation loans to low and moderate income families, (b) 
up to $2 billion in other energy conservation loans, and (c) up to 
$110 million in loans for solar energy systems. 

The conference agreement also authorizes the Secretary of Housing 
and Urban Development to (a) annually contract $10 million for 
energy conservation improvements in certain existing low-income 
housing projects, and (b) make grants to finance energy conservation 
improvements to multifamily housing projects whose mortgage loans 
are insured under the National Housing Act. In addition, the Secre- 
tary is (a) to establish minimum standards for energy conservation 
improvements to the aforementioned multifamily dwelling units, and 
(b) authorized $10 million in Fiscal Year 1979 for grants to State and 
local government in support of adoption of energy conservation 
standards for all new buildings. 



12 

F. Revenue Aspects of the Programs 

Consideration of expenditures alone for Federal energy and other 
natural resource programs in many instances does not provide a 
comprehensive perspective on the use of public resources. The Congress 
also must consider the long-term development of public resources 
and the receipts derived thereform. 

DEPARTMENT OF THE INTERIOR 

The natural resource programs of the Department of the Interior 
result in proprietary receipts and Outer Continental Shelf receipts. 
Proprietary receipts (see table) are estimated as $1,068 billion and 
$1,182 billion for fiscal years 1978 and 1979, respectively, which are 
included in the Departmental totals in the President's Budget Docu- 
ments. In addition, Outer Continental Shelf receipts of $2 billion 
and $1,800 billion for fiscal years 1978 and 1979, respectively, are 
shown as a governmentwide offsetting receipt. 

The total estimated receipts from the Bureau of Land Manage- 
ment's public land programs is estimated as $2,506 billion and $2,361 
billion for fiscal years 1978 and 1979, respectively. These estimated 
receipts exceed the total BLM budget for these years. 

DEPARTMENT OF THE INTERIOR 

BUDGET TOTALS 
[In millions of dollars: fiscal years] 

Increase or 
1978 1979 decrease 

Gross, budget authority 

Less: Offsetting receipts 

Net, budget authority. 

Gross, budget outlays 

Less: Offsetting receipts 



5,450 


5,710 
-1,257 


+260 


-1,193 


-64 






4,257 


4,453 


+196 






5,097 
-1,193 


5,260 
-1,257 


+163 
-64 







Net, Budget outlays. .. 


3,904 


4,003 


+99 








ESTIMATED OFFSETTING RECEIPTS BY BUREAUS 
[In thousands of dollars; estimated] 


Bureau or office 




1978 


1979 



Bureau of Land Management 506,014 561,014 

Bureau of Reclamation. 240,325 258,995 

National Park Service... 21,443 21,414 

Geological Survey 6,236 6,786 

Bureau of Mines. 816 816 

Office of Territorial Affairs 3,500 4,000 

Office of the Secretary 2,005 664 

Subtotal 

With OCS receipts— Bureau of Land Management. 

Total 

Fish and Wildlife Service ' 

Buieau of Indian Affairs '... 

Subtotal 

Total, off setti ng recei pts 

With OCS... 

Total 3,193,017 3,057,461 

1 Offsetting receipts not within committee jurisdiction. 



780, 339 
2, 000, 000 


853, 689 
1, 800, 000 


2, 780, 339 


2, 653, 689 


7, 700 
404, 978 


7,700 
396, 072 


412,678 

. 1,193, 017 ~ 
2, 000, 000 


403, 772 

1,257,461 
1,800,000 



13 

Since expenditures for Federal resource programs in many instances 
result in increased revenues from the use of public resources, the 
Congress should consider these expenditures as a capital investment 
rather than as a simple outlay of funds. Failure to make these invest- 
ments at the level which at least maintains the value of the resource 
means that we will allow a large percentage of our natural resource 
base to deteriorate. This is clearly not in the long-term national 
interest since the strength of our Nation is based heavily on our 
wealth of natural resources. 

In part because of failure to adequately reflect this interrelation- 
ship, the estimated receipts for fiscal } T ear 1978 from Bureau of Land 
Management programs are now estimated at $2,506 billion rather 
than $3,755 billion in the committee's report last year. 

DEPARTMENT OF EXEKGY 

The programs of the Department of Energy also generate sub- 
stantial Federal receipts. The principal program is uranium enrich- 
ment for nuclear power reactor fuel which will result in estimated 
revenues of $966 million and $1,209 billion in fiscal years 1978 and 
1979, respectively. However, the revenues projected by the Adminis- 
tration to accrue to the Department of Energy from enrichment 
services include $163 million which are anticipated revenues based on 
enactment of commercial pricing legislation in the 95th Congress. 
Since the Congress rejected a similar legislative proposal in the fiscal 
3'ear 1978 authorization bill, allowance should be made in the budget 
resolution for an increase in the Department of Energy authorization 
total to encompass the possibility that the Congress will again reject 
enactment of the proposed legislation. Also, the Administration has 
stated the intention to propose legislation shortly establishing a re- 
volving fund for uranium enrichment revenues and operations. Passage 
of such legislation could result in additional budget requirements in 
fiscal year 1979, and may impact on the revenue and obligation totals 
associated with the uranium enrichment operations. 

The President's proposed budget for the Energ}^ function assumes 
offsetting receipts based on enactment of the original tax proposals 
contained in the President's National Energy Plan submitted to the 
Congress last spring. 

The major proposals include (a) a crude oil equalization tax; 
(b) an oil and natural gas consumption tax on certain industrial and 
utility use; (c) an auto efficiency (or gas guzzler) tax; and (d) residen- 
tial and business tax credits. 

Tax receipts generated from these proposals would generally be 
returned to the economy through tax refunds and increased Federal 
spending. The energy proposals reduce estimated receipts by $0.1 
billion in 1978 and increase receipts by $1.1 billion and $2.9 billion in 
1979 and 1980, respectively. Anticipated changes by the Congress 
in the Administration's proposals would significantly change the 
estimates of receipts and impact on the Energy function budgetary 
ceilings to the extent relied on as offsetting receipts. 



14 

G. Direct Spending Jurisdiction 

The committee has within its jurisdiction several continuing 
programs which involve direct spending jurisdiction. The most 
significant of such programs is the uranium enrichment program of 
the Department of Energy mentioned above. 

A summary of the direct spending accounts within the jurisdiction 
of the Committee on Energy and Natural Resources follows : 

List of direct spending accounts within the jurisdiction of the Committee on Energy 

and Natural Resources 
Energy (270) : Treasury 

Energy supply (271) : Account No. 

Advances for cooperative work 89-8575 

Continuing fund, Southwestern Power Administration 89-5649 

Natural Resources and Environment (300) : 
Water resources (301) : 

Colorado River Basin project 14-4079 

Reclamation trust funds 14-8070 

Payments from proceeds, sale of water 14-5662 

Conservation and land management (302) : 

Forest Service permanent appropriations 12-9922 

Miscellaneous permanent appropriations 14-992 1 

Miscellaneous trust funds 14-9971 

Recreational resources (303) : 

Land and water conservation fund 14-5005 

Donations 14-8085 

Miscellaneous permanent appropriations 14-9924 

Miscellaneous trust funds 14-9972 

Pollution control and abatement (304) : Litter prevention and 

cleanup 14-5031 

Other natural resources (306) : 

Helium fund 14-4053 

Contributed funds 14-8287 

Community and regional development (450) : 
Community development (451) : 

Community disposal operations fund 86-4040 

Cooperative funds 48-8061 

General government (800) : 

General property and records management (804) : Virgin Islands 

Corporation Liquidation Fund 47-4480 

Other general government (806) : 

Office of the Comptroller of Guam 14-5739 

Civil War Centennial Commission: Donations 76-8082 

Other general purpose fiscal assistance (852) : 

Miscellaneous permanent appropriations (other general purpose 

fiscal assistance) 14-9921 

Miscellaneous permanent appropriations 14-9922 

Internal revenue collections for the Virgin Islands 14-5738 

Miscellaneous permanent appropriations (U.S. Customs 

Service) 20-9922 



II. MAJOR PROGRAM AREAS 

A. Department of Energy 

1. DEPARTMENTAL OPERATIONS 

The Department of Energy conducts a number of piogram activi- 
ties which cannot readily be assigned to the various program areas 
discussed subsequently. In this regard the Department of Energy's 
proposed budget proposes $504,860,000 for the mission of Policy and 
Management, the personnel within this mission are not assigned on a 
permanent basis to particular program areas but rather can be 
assigned to the various program areas at the discretion of the Sec- 
retary. 

The committee paid particular concern to the allocation of these 
personnel among the programs within its jurisdiction. As discussed in 
the overview section, these allocation policies within the new De- 
partment of Energy pose a potential problem. Several of the opera- 
tional programs have been denied authority by the Department to 
fill obviously essential positions. On the basis of the committee's 
examination of this mission it does not appear that the Department 
is overstaffed as a whole and the committee does not estimate a budg- 
etary change. However, the committee will be making further inquiries 
into this situation, and may wish to influence the allocation of these 
positions to identifiable program areas in the fiscal year 1979 author- 
ization bill. 

2. ENERGY SUPPLY RESEARCH AND DEVELOPMENT 

General 

The Department of Energy programs related to Energy Supply — 
Research and Development support research and development of 
technologies intended to impact on the energy requirements of our 
country in the near-, mid-, and long-term. These programs are oriented 
to areas of research, development and demonstration which private 
industry either cannot fund or has not funded due to technical, en- 
vironmental, economic or institutional barriers to the commercializa- 
tion of the technologies. 

Prior to fiscal year 1978, the annual increases in funding for these 
programs were rapid and largely due to Congressional initiatives to 
insure that alternatives to petroleum and natural gas were being 
developed so that they could be commercialized between now and 
2000. In fiscal year 1978, the Carter Administration submitted a re- 
vised budget and a budget amendment for the then Energy Research 
and Development Administration programs to shift the emphasis of its 
research and development activities heavily toward the near-term 
with decreased emphasis or termination of a number of activities in 
nuclear fission, solar electric, and nuclear fusion programs. Explicit 
statements were made that the commercialization of first generation 
coal gasification would not be supported. 

(15) 



16 

The President's proposed Department of Energy budget for fiscal 
year 1979 continues the shift toward near-term results in meeting the 
energy crisis with heavy emphasis on regulatory, conservation, and 
strategic activities at the expense of Energy Supply — Research and 
Development programs. This area has experienced a real dollar de- 
crease in funding without any consideration for inflation. The 5-year 
projected expenditures for Energy Supply — Research and Develop- 
ment indicate a continuation of this pattern, with the projected fund- 
ing in fiscal year 1983 exceeding the fiscal year 1979 budget by only 
4 percent without allowing for inflation, thereby resulting in a real 
dollar increase. 

Without a change in the budgetary allocation for Energ}^ Supply — 
Research and Development, the Nation may successfully meet the 
short-term energy problem, but fail to solve the longer-term problem. 
Based on the requests made by the Department of Energy to the 
Office of Management and Budget, it is clear that a number of pro- 
gram activities were curtailed during OMB review and that additional 
funding is justifiable for several programs. 

If committee review during consideration of authorization legisla- 
tion discloses poor planning or unpromising experimental results in 
any programs the committee will reduce authorizations. 

Fossil Energy 

A major energy problem in the coming decade will be a shortage of 
gaseous and liquid fuels. This problem can be somewhat ameliorated 
by substituting coal for petroleum, and by enhancing domestic liquid 
fuel supplies. The Administration's National Energy Plan emphasizes 
the former strategy. The latter strategy involves the enhancement of 
domestic petroleum supplies but, more importantly, it implies the de- 
velopment of industries capable of producing alternative fuels from 
coal and other resources. 

The fossil energy program includes funding for coal, petroleum, and 
natural gas research and development. The coal program is responsible 
for coal mines, coal liquefaction, and coal gasification research and 
development. In light of the need for oil and gas substitutes, the com- 
mittee may increase substantially the funding for coal gasification and 
liquefaction. Smaller increases may be recommended to allow for ex- 
pansions in other parts of the coal program. 

Other additions to the Fossil Energy Program budget request will 
probably be recommended for oil shale development, for research 
and development on unconventional gas deposits, and for magneto- 
hydrodynamics development. 

As noted elsewhere in this report, legislative action on S. 419, the 
Federal Oil Shale Commercialization Test Act is contemplated this 
session. Increases in authorization for fiscal year 1979 for the expanded 
oil shale program may be authorized by that act. 

Many of the fossil energy pilot plants funded by the Department 
of Energy are operational. The next step toward commercialization 
is the construction and operation of demonstration-sized plants. How- 
ever, due to the high cost of these projects, not all technologies will be 
demonstrated. 

The authorization contemplated by the committee may include 
funds for additional liquefaction and gasification initiatives. 



17 

Nuclear Energy 

The Administration indicated in fiscal year 1978 that even though 
commercial reprocessing would not be permitted and the Clinch 
River Breeder Reactor Project should be terminated, the activities 
in fuel cycle research and development and the Liquid Metal Fast 
Breeder Reactor (LMFBR) base program would continue to be funded 
at a strong level. However, the budget submission to the Congress 
for fiscal }^ear 1979 indicates a further retrenchment in fund- 
ing for the nuclear fuel cycle and the LMFBR base program. The 
committee in its consideration of the proposed authorization legislation 
may make significant additions to these two program areas to insure 
that adequate funding is available to maintain sufficient research and 
development activity to preserve these nuclear fission options as well 
as to support the International Nuclear Fuel Cycle Evaluation pro- 
gram in seeking proliferation-resistant technologies. Smaller adjust- 
ments in other areas of the nuclear fission program ma}' be made by the 
committee to increase emphasis on programs of special interest or to 
decrease funding for programs lacking a sound technical basis. 

The President's proposal to terminate the Clinch River Breeder Re- 
actor Project was not accepted by the Congress in fiscal year 1978. In- 
stead, $80 million in fiscal year 1978 for continuation of the project was 
included in an appropriation act. Whether the Congress will decide 
to terminate or continue the project in fiscal year 1979 is unclear. 
In either case, an authorization and appropriation of up to $200 
million may be required for fiscal year 1979. In the event of termination, 
funds will be required to repay the utilities for their contribution to 
the project, and to pay termination costs on existing contracts in 
order to avoid or minimize lawsuits against the Federal Government. 

A number of plant and capital equipment projects in the proposed 
fiscal year 1979 budget for nuclear programs would be slowed or 
curtailed. The committee intends to examine these projects and con- 
sider the need for increases in funding for certain other projects. 
The committee's estimate allows for an increase in funding for these 
projects. 

Solar Energy 

Substantial progress has been made in bringing all aspects of solar 
energy technology closer to technology demonstration and ultimately 
to commercialization. New applications for solar thermal and solar 
electric systems have been discovered. Most of this progress has 
resulted from recent Government-funded programs under Con- 
gressional mandates contained in the Solar Heating and Cooling 
Demonstration Act and the Solar Energy Research, Development, 
and Demonstration Act, both enacted during 1974 in the 93rd Con- 
gress. Much of the funding for these programs has resulted from Con- 
gressional increases to the budgets since 1974. 

The President's budget request for solar energy programs for fiscal 
year 1979 does not reflect the commitment needed to make solar energy 
a significant contributor to our Nation's energy supply. L T nfortunately 
the budget request for solar energy research and technology develop- 
ment does not allow for the initiation of any new projects or for the 
expansion of existing programs. The committee has not finished its 
evaluation of these initiatives but additional funding can be antici- 
pated. The funding request for solar applications is substantially below 



18 

the fiscal year 1978 appropriations mark due to a 44 percent cut in the 
solar heating and cooling demonstration program. 

The Administration has indicated that reliance in the future will be 
placed on tax incentives, rather than demonstrations. The Committee 
believes that this program should not be phased out until the positive 
impact of the solar tax credits in the National Energ}^ Act can be veri- 
fied. The committee budget submittal contemplates additional funds 
for the continuation of the solar heating and cooling demonstration 
program and for new initiatives as well as for expansion of the existing 
programs. 

Geothermal Energy 

The geothermal program funding request allows expansion in its 
five major subprograms. Most projects previously identified by the 
committee as underfunded are now adequately funded. However, the 
committee is interested in ensuring that nonelectrical applications and 
low temperature geothermal rseources for electrical generating uses are 
given higher priority. The committee budget submittal contemplates 
additional funding for these areas. 

The National Energy Act contemplates a large increase in the low- 
head hydroelectric program which is administered by the Division of 
Geothermal Energy within the Department of Energy. The National 
Energy Act includes $10 million in fiscal year 1979 for such activities 
under the Energy Supply' — Research and Development category. This 
is included in the committee's budget estimate. 

Magnetic Fusion 

Due to the increased emphasis on near- and mid-term national 
energy problems, the Magnetic Fusion Program is progressing at a 
pace below that prior to the Carter Administration fiscal year 1978 
revised budget request. The proposed fiscal year 1979 operating 
expenses for the magnetic fusion program do not keep pace with 
inflation. The committee may add additional funds to insure on-going 
activities are funded adequately. 

In the past the committee has authorized fusion energy projects 
with the intention of completing the project. Since the fiscal year 
1979 budget request does not contain sufficient funding for the pro- 
gram projects, the committee may seek to authorize sufficient funds 
to maintain the previous project schedules intended by the Congress. 

Summary 

In the committee's judgment the President's proposed fiscal year 
1979 budget for Energy Supply — Research and Development ac- 
tivities is under-funded in a number of areas. On the basis of the 
committee's review, it estimates that an increase in budget authority 
of up to $750 million may be required to meet the legitimate needs of 
current programs and new programs proposed in the DOE budget for 
Energy Supply — Research and Development. The committee recom- 
mends $3,420,362,000 in budget authority for this program area. 

This funding increase includes the possible authorization and appro- 
priation of additional funds for the termination or continuation of the 
Clinch River Breeder Reactor Project. The projected funding levels 
for fiscal year 1980-83 would increase at a rate to match the rate of 
inflation in operating expenses, but would be larger for newly initiated 
construction projects as the activity levels increase in the later years. 



19 

3. ENERGY SUPPLY PRODUCTION, DEMONSTRATION AND DISTRIBUTION 

The program area of Energy Supply — Production, Demonstration 
and Distribution is "oriented toward the development, private sector 
adoption, production, utilization and distribution of currently avail- 
able energy resources". Specific activities include: 

— Development and production of oil from the Naval Petroleum 
and Oil Shale Reserves 

— Production and sale of enriched uranium services for use in 
nuclear powered electrical generating plants. 

— Distribution and sale of electric power in five power marketing 
areas. 

— Demonstrations or other financial incentives to accelerate the 
introduction of new energy supply sources into the market place. 

Within this area are the following major programs areas: (a) coal 
utilization; (b) low-head hydroelectric power; (c) solar energy dem- 
onstration; (d) the Leasing Programs Office; (e) uranium resource 
assessment and (f) uranium enrichment. 

The President's proposed budget for fiscal year 1979 would authorize 
$564,116,000 for Energy Supply — Production, Demonstration, and 
Distribution. Because of the vital role this program must fulfill, 
the committee estimates, as discussed herein, an increase of $425,- 
009,000 in the program area. 

Coal Utilization 

The Senate-House conference on the National Energy Plan legis- 
lation has approved those provisions (H.R. 5146) concerning greater 
utilization of coal and other alternative fuels to natural gas and oil. 
This measure extends the present programs set forth in the Energy 
Supply and Environmental Coordination Act of 1974. The fiscal year 
1978 budget authority is $3,717 million for utility and industrial coal 
conversion. 

The President's requested fiscal year 1979 budget authority for 
coal conversion is $2,940 million, despite anticipated new and expanded 
authorities under H.R. 5146. This program potentially can achieve 
two-thirds of the oil import saving attributed to the National Energy 
Plan. Therefore, the committee estimates that the program authoriza- 
tion will be increased by $12.56 million to the full authorization of 
$15.5 million as provided for in the conference agreement on H.R. 5146. 

Impact Aid 

The coal conversion portion of the energy conference agreement 
establishes a program for funding of planning grants and site improve- 
ment in areas impacted by coal or uranium development. The bill 
authorizes $60 million in fiscal year 1979 and $120 million in fiscal 
year 1980. 

The President's proposed budget submission does not provide for 
funding of this program. The committee estimates funding at the 
authorized level of $60 million in fiscal year 1979. 

Coal Loan Guarantee Program 
The Energy Policy and Conservation Act (Public Law 94-163) 
authorized $750 million in incentives as loan guarantees to develop 
new underground coal mines. This program was structured to com- 
pliment the coal conversion authorities set forth in the Energy Supply 
and Environmental Coordination Act of 1974. 



20 

Subsequently, in H.R. 5146, the Senate-House conference on Na- 
tional Energy Plan legislation expanded the scope of this program 
to further encourage new development of low-sulfur coal supplies. 
Despite continued Congressional support for this program, no budget 
authority is requested for fiscal year 1979. 

The committee estimates $6,870 million in budget authority (at the 
level requested by the Department from the Office of Management 
and Budget). 

Coal Research Laboratories 

The public utility rate reform legislation pending in conference in- 
cludes an authorization to the Department to spend up to $30 million 
in fiscal year 1979 to establish 10 coal research laboratories at insti- 
tutions of higher learning in States with abundant coal resources. 
This same authorization is also contained in the Surface Mining 
Control and Reclamation Act of 1977 as originally passed. The 
committee recommends full funding of this program at $30 million 
in fiscal year 1979. 

Low-Head Hydroelectric Power 

The public utility rate legislation pending in conference authorizes 
the Secretary of Energy to make loans for studies to determine the 
feasibility of small hydroelectric development of existing dams 
and for construction of projects which appear feasible. Up to $10 
million may be loaned for feasibility studies and $100 million for 
construction loans are authorized for fiscal year 1979. Loans for 
feasibility studies may be forgiven for projects which prove infeasible. 
The committee recommends that provision for this program be made 
in the budget resolution. 

Solar Energy Demonstration 

Strategies for the commercialization of techniques for using solar 
energy to replace depletable fossil fuels and electricity generated by 
the combustion of fossil fuels are expected to receive increasing atten- 
tion during the remainder of the 95th Congress. The energy conserva- 
tion portion of the energy legislation pending in conference committee 
reflects a concern that the Federal Government do all it can to foster 
promising solar techniques on the verge of commercial viability. 

Two significant solar commercialization programs which would be 
authorized by the pending legislation imply financial commitments in 
fiscal year 1979 which do not appear to be adequately accounted for in 
the President's request. 

First, a program to demonstrate solar heating and cooling in Federal 
buildings is authorized to spend $100 million through fiscal year 1980. 
The committee believes that a vigorous start should be made to im- 
plement this program. 

A second initiative provided for in the bill authorizes the purchase 
of up to 30 megawatts of photovoltaic capacity by the Federal estab- 
lishment for locations and uses for which electricity is expensive to 
provide by other methods. The pending legislation authorizes $98 
million for purchase of photovoltaic devices over the 3 fiscal years 
beginning alter enactment. The President's request does not provide 
funding for photovoltaic purchases, which is commensurate with this 
progr&m. The committee considers it essential that the option be 
preserved to move forward rapidly with this program. 



21 

Finally, the Department of Energy has in existence a modest 
analytical program to evaluate strategies for solar commercialization. 
This program, which was mandated by the Energy Conservation and 
Production Act, appears to be quite inadequately supported in the 
President's request. 

Therefore, the committee estimates an increase of $41,600,000 in 
budget authority in fiscal year 1979 for solar energy demonstration. 
This would include funds in accordance with the conference agreement 
on National Energy Plan legislation in the amount of $41.6 million for 
demonstration of solar heating and cooling in Federal buildings and 
$30 million for the purchase of photovoltaic devices. 

Federal Leasing Programs 

Under the DOE Organization Act, the Leasing Program Office is 
charged with the following responsibilities : 

(1) Fostering of competition for Federal leases (including pro- 
hibition on joint bidding) ; 

(2) Implementation of alternative bidding systems; 

(3) Establishment of diligence requirements ; 

(4) Setting of rates of production for Federal leases; and 

(5) Specifying the procedures, terms and conditions for the 
acquisition and disposition of Federal royalty interests taken in 
kind. 

So far, the funding for this Office has come from the general funds 
of the Resource Applications Assistant Secretary. The Department of 
the Interior intends to ask for a supplemental appropriation of $3 
million, which the committee supports. However, if those activities 
are conducted by the Department of Energy this adjustment in 
Department of the Interior funds will not be needed. 

Uranium Resource Assessment 

The purpose of the uranium resource assessment program is to 
assess the nuclear fuel resource base for the United States, and to 
resolve uncertainties about the extent, availability and economics of 
domestic resources. The funding requested will be used primarily to 
support the national uranium resource evaluation (NURE) program 
which will evaluate domestic uranium resources, as well as thorium 
resources, in the conterminous United States and Alaska. 

The NURE program is a cooperative effort involving the Depart- 
ment of Energy, the Geological Survey, State governments, industry 
and universities. In addition to domestic evaluations, international 
cooperative efforts will be increased to assess foreign uranium supplies 
for market availability and in support of the administration's non- 
proliferation activities. 

The President's requested $95,200,000 for fiscal year 1979 is to 
accelerate surface geologic investigations in priority areas, initiate a 
joint Government/industry drilling program, accelerate sample an- 
alysis, and provide support for international uranium assessment 
efforts. The committee generally supports the increased level of funding 
because of the importance of this resource assessment. However, it is 
noted that the budget numbers do not include personnel salaries 
which involve 107 individuals. 



22 

Uranium Enrichment 

The uranium enrichment activities proposed in the fiscal year 
1979 budget seem to be funded at an adequate level to achieve the 
necessary perfection of gas centrifuge technology, and to support the 
construction of the Portsmouth add-on facility. The revenues expected 
to accrue to the Department of Energy from enrichment services 
include $163 million which are anticipated revenues based on enact- 
ment of commercial pricing legislation in the 95th Congress. Since 
the Congress rejected a similar legislative proposal in the fiscal year 
1978 authorization bill, allowance should be made in the budget reso- 
lution for an increase in the Department of Energy authorization 
total to encompass the possibility that the Congress will again reject 
enactment of the proposed legislation. 

4. POWER MARKETING ADMINISTRATIONS 

The Power Marketing Administration market power produced at 
certain Federal hydroelectric generating projects in the United States 
utilizing high voltage transmission systems. The five Adminisrrations 
included in this activity are: (a) the Alaska Power Administration; 
(b) Bonneville Power Administration; (c) the Southeastern Power 
Administration; (d) the Southwestern Power Administration; and 
(e) the newly formed Western Area Power Administration. The 
President's budget request includes $127,473,000 for this program 
area which the committee estimates will be increased by $8.4 million 
for fiscal year 1979, as discussed herein. 

In the committee's judgment the Power Marketing Administrations 
require a greater certainty and stability with respect to their budgets 
and personnel than does the Department of Energy generally. This 
need arises from their primary function which is the production and 
marketing of electric power. 

The committee recommends that the budgets of the Power Market- 
ing Administrations not be subject to Department of Energy budget 
cuts or personnel ceilings. The Administrations are involved in pro- 
duction and marketing of electric power and therefore require a 
greater certainty with respect to both their budgets and personnel 
availability. Traditionally, the Bonneville Power Administration has 
enjoyed this independence with respect to its budgets. It was the 
committee's intention that such independence continue after the 
transfer of this agency to the DOE. Since the functions of BPA are 
similar or identical to those of the other Power Marketing Adminis- 
trations, they too should be afforded this independence. 

Bonneville Power Administration 

Bonneville Power Administration (BPA) is the Federal electric 
power marketing agency for the Pacific Northwest assigned to the 
new Department of Energy, which was created by the Department of 
Energy Organization Act of 1977. The BPA lost 71 personnel slots 
to the Department as a result of action by the DOE. The committee 
recommends that the Department restore these positions to the 
program. 

Western Area Power Administration 

The Western Area Power Administration (WAPA) markets the 
power and energy generated at Federal generating projects in 14 



23 

Western States to wholesale customers, constructs transmission 
facilities in selected areas, and operates and maintains an extensive 
high voltage transmission system. The President's request for fiscal 
year 1979 is $103,738,000. 

WAPA was created by the Department of Energy Organization 
Act provision transferring the power functions of the Bureau of Rec- 
lamation to the DOE. At its formation, 1,039 positions were trans- 
ferred to WAPA. Sixty openings also were transferred from the Bureau 
of Reclamation. However, the DOE chose to reduce the personnel 
level to its current 940 positions. 

It is estimated by WAPA representatives that an additional 236 
slots are required, mostly to staff the headquarters office. These slots 
are not provided for in the 1979 budget. The committee recommends 
an increase of $8.4 million for such personnel. 

5. ENERGY CONSERVATION 

General 

In order to solve the shortage of domestic natural gas and petroleum 
supplies, the administration proposes a substantial reduction in the 
historical rate of growth in energy consumption. The goal is to achieve 
an annual energy growth rate of not more than 2 percent by 1985. 

The energy conservation programs initiated by the Congress 
for the Energy Research and Development Administration and in 
the Federal Energy Administration have grown rapidly in the last 
few years. Compared to fiscal year 1978, of $655,283,000 the 
proposed fiscal year 1979 budget doubles Federal funding for 
energy conservation to an amount in excess of $1 billion. 

Energy Extension Service 

The legislation creating the Energy Extension Service (Public Law 
95-39) specifically stated that no cost sharing with State or local 
governments can be required unless specifically authorized in a 
subsequent annual authorization. Title VIII of the fiscal year 1979 
authorization bill would delete the cost-sharing restriction, replaces 
it with a 50/50 cost-sharing requirement and includes only 50 percent 
of the funds anticipated for this program. Although it may be the 
best policy to demand a 50/50 cost-shared program in the future, 
many States were not warned that this condition would be in effect in 
fiscal year 1979 and their budgets do not contain the flexibility to 
start a cost-shared program. As a result, those States will not be able 
to participate in the program. The committee expects that full funding 
will be reinstated for this program and that the matching grants 
program be phased in after fiscal year 1979. 

Energy conservation initiatives involving new regulatory programs, 
new and expanded grant programs and an enhanced Federal role 
in demonstrating and encouraging the adoption of energy conserving 
methods and technology are contained in the energy legislation 
pending in conference committee. Some of these initiatives have been 
recognized and adequately funded in the President's budget request. 
In addition, the President's request generally follows Congressional 
intent in the funding of energy conservation programs authorized 
or required under existing law. However, a number of omissions in 
the President's request are a source of concern to the committee, 
as are a few areas in which requested funding appears to be less than 
adequate. 



24 

The committee expects that vigorous programs meeting the time- 
tables set forth in the energy conservation legislation pending in 
conference committee will be established. Programs affected include 
mandatory efficiency standards for new appliances, effective moni- 
toring of the efficiency of energy use and the use of recovered materials 
in industry, and adequate analysis of the potential for energy efficiency 
improvements in certain industrial equipment through labeling or 
mandatory standards. The President's request is not adequate in this 
regard, and additional funding of approximately $12 million may be 
necessary. 

The President's budget request includes $10 million for the purchase 
of passenger vans by the Federal Government to provide vanpooling 
for Federal employees. However, such a program has been rejected 
by the conference on the pending energy legislation. Nevertheless, 
Federal efforts to encourage vanpooling in the private sector should 
continue. The committee also feels that funds for departmental activ- 
ities for evaluating energy conservation opportunities within the 
Federal establishment should be more generous than the President 
has requested. 

The committee generally supports the decision of the President to 
request full funding for the low income weatherization program and 
for the grant program supporting the development of State energy 
conservation plans. However, certain grant programs benefiting State 
and local governments appear to be significantly underfunded in the 
President's request. 

Programs are authorized by the Energy Conservation and Produc- 
tion Act and by the pending energy legislation to address the need for 
owners of buildings to obtain accurate and reliable audits of energy 
use. Grants to build the capacity of State energy offices to provide 
low-cost energy audits to residential, commercial and industrial custo- 
mers have in the past been, and appear in the fiscal year 1979 request 
to be, underfunded. The funding level requested for the program of 
grants to municipalities and units of local government to defray the 
cost of these audits is significantly below the authorization level in 
the pending energy legislation. The committee anticipates that future 
Federal conservation efforts will only place additional strains on the 
capacity to perform such audits, and expects to recommend that the 
Federal programs to expand this capacity be adequately supported. 
The committee believes that approximately $70 million in additional 
funds may be necessary to meet this need. 

Utility Rate Reform 

Legislation pending in conference requires State utility commissions 
and large nonregulated utilities to undertake extensive investigations 
and demonstrations of the applicability of a series of ratemaking con- 
cepts. The Department is granted a significantly larger role in partici- 
pating in the proceedings in which these concepts are considered. Grant 
programs to provide funds to partially defray the costs of these 
demonstrations, investigations and proceedings appear to be under- 
funded in the President's request. The committee expects that as 
much as $50 to $70 million in additional funds may have to be made 
available in fiscal year 1979 if the intent of this legislation is to be 
carried out. 



25 

Research and development activities have grown rapidly to accom- 
modate the development of technologies which can have a near-term 
impact on improving the efficiency of energy conversion and consump- 
tion and eliminating unnecessary energy use. However, the committee 
may increase program funding to assure orderly development of mar- 
ketable technology as well as adequate funding for long-range 
programs. 

Federal Facilities 

The committee has not had an opportunity to hold detailed hearings 
on the Department's proposals to improve the energy efficiency of its 
own buildings and operations. The proposals requested by the Presi- 
dent appear to be consistent with the intent of Executive Order No. 
12003 which sets forth guidelines and policies with respect to renova- 
tion of Federal facilities for energy conservation. Taken together, the 
proposals of the Department have an average payback period of 2.6 
years, and appear, therefore, to be quite cost effective. 

The committee may not propose increases in fiscal year 1979 
funding above the President's request of $37,400,000 for these 
purposes. 

However, the committee wishes to call to the attention of the 
Budget Committee the statutory requirement for the formulation 
of a 10-year plan for the implementation of energy conservation 
measures in Federal facilities. The funds for the renovation of Federal 
facilities to comply with Executive Order No. 12003 appear in indi- 
vidual agency appropriation requests. As such these monies are 
reflected in other than the Energy Conservation subfunction. 

Community Systems Programs 

The major objective of DOE's buildings and community systems 
program is to conduct activities related to more efficient use of energy 
in buildings, community systems and consumer products. 

In particular the committee is cognizant of the significant potential 
for energy conservation in the buildings sector and believes that the 
funding for the buildings and community systems program may need 
to be increased to support new initiatives and expanded activities in 
certain areas. In addition, the committee notes that the request 
does not include funding for the financial support program for munici- 
pal waste reprocessing demonstration facilities established in Public 
Law 95-238. 

An increase in the buildings and community systems budget request 
would be required to fund the municipal waste program at the level 
authorized by the Congress and to expand other promising programs. 

Summary 

The President's proposed budget for fiscal year 1979 would authorize 
$1,010,000,000 for energy conservation programs not discussed else- 
where. However, due to omissions of concern to the committee, as 
discussed herein, an increase of $187,500,000 is estimated in this pro- 
gram area. 

6. ENVIRONMENT 

The President's proposed budget for fiscal year 1979 would au- 
thorize $208,588,000 for environmental programs which are divided 
into two program activities: Overview and Assessment and Biomedical 

24-427—78 3 



26 

and Environmental Research. As discussed herein, the committee 
estimates an increase of $21,412,000 for such essential environmental 
programs within the subfunction Energy Supply. 

Overview and Assessment 

The overview and assessment program is responsible for insuring 
that the Department of Energy places the proper emphasis on en- 
vironmental, health, and safety considerations in formulating and 
implementing energy research, development and demonstration deci- 
sions, plans and programs. The activities and personnel in this program 
area, which was transferred from the Energy Research and Develop- 
ment Administration, now must meet significantly expanded responsi- 
bilities relating to programs transferred from the Federal Energy 
Administration, the Department of the Interior Federal Power Com- 
mission, Department of Housing and Urban Development, Depart- 
ment of Commerce, and the Navy. However, the budget authority 
requested for Overview and Assessment for fiscal year 1979 is increased 
by only one-tenth of 1 percent to $48,650,000 compared to $48,010,- 
000 lor fiscal year 1978. In the committee's judgment this funding 
will not permit the Office of Environment to perform its expanded 
responsibilities mandated under the Department of Energy Organiza- 
tion Act. Therefore, the committee estimates that an increase of 
$4 million may be required for the overview and assessment program. 

Biomedical and Environmental Research 

The primary objective of the biomedical and environmental re- 
search program is to support research which will assure that all energy 
technologies are developed with minimal detrimental impact on 
human health and the environment. The program activities include 
performing research needed to determine adverse effects associated 
with energy technology development, providing offices responsible for 
the development of energy production technologies with the informa- 
tion and cooperation needed to insure environmental acceptability 
during development and commercialization phases, and providing 
research data required for estimates of the environmental cost/risk/ 
benefit tradeoffs involved in development of energy resources and 
production technologies. 

The Piesident's request for biomedical and environmental research 
budget authority for fiscal year 1979 reflects a transfer proposed by 
the Office of Management and Budget of certain research projects 
from the Department of Energy to the Environmental Protection 
Agency. The details of the transfer have not been agreed upon; how- 
ever, the committee feels strongly that DOE should continue to have 
the capability to do research on the health and environmental effects 
of emerging energy technologies. For this purpose, the committee 
expects to recommend restoration of funding for some or all of the 
transferred projects. 

Responsibility for studios of the effects of low-level radiation is 
centered in the Biomedical and Environmental Research Division. 
Recently, the Department announced plans to expand the current 
DOE health and mortality study relating to low-level occupational 
exposures to all its facilities, in addition, the Department would: 
(1J establish a medical follow-up program for individuals exposed to 



27 

5 rem or more in any 1-year period; (2) initiate studies relating to 
Desert Rock nuclear weapons test; and, (3) initiate studies of workers 
in the nuclear propulsion program at naval shipyards. If approved by 
the committee such a program would require additional funds. 

Decontamination and Decommissioning 

The overall objective of the Decontamination and Decommissioning 
programs conducted by the Division of Environmental Control 
Technology is to reduce the potential environmental hazards associ- 
ated with sites and facilities that were once used in the Nation's 
nuclear programs and which are no longer required or used for this 
purpose. They include both Government-owned property now surplus 
to programmatic needs, and private property where activities involving' 
handling of radioactive materials (principally uranium ores) were 
conducted under Government contract. Decontamination and decom- 
missioning actions are conducted with the goal of minimizing the risks 
and restoring sites and facilities for alternative beneficial uses. Any 
residual radioactive materials at these facilities must be properly 
contained, stabilized, or removed and disposed of so that all potential 
impacts are reduced to the lowest level practicable. 

The President's budget request for this program for fiscal year 1979 
is $25 million, an increase of $7 million from fiscal year 1978. 

The committee understands that the Department could institute 
an accelerated decontamination program relating to uranium mill 
tailings disposal sites with appropriate legislative authority. If such 
legislation is considered the committee may recommend additional 
budget authority. 

7. EMERGENCY ENERGY PREPAREDNESS 

The committee considers this activity an essential role for the 
Department and applauds evidence of efforts to upgrade the De- 
partments' capabilities. The President's fiscal year 1979 budget 
request includes $10,590,000 (an 86-percent increase over the fiscal 
year 1978 estimate for the preparation of contingency plans and man- 
agement S3^stems). The committee does not anticipate any significant 
increase in funding for this program area. 

8. EMERGENCY ENERGY PREPAREDNESS STRATEGIC RESERVES' 

In June 1977, Congress approved the Administration's proposal to 
accelerate the timetable for achieving 500 million barrels of crude oil 
storage in the Strategic Petroleum Keserve. The SPR Plan was 
amended to shorten by 2 years the time required to complete the pur- 
chase and storage of that volume of petroleum (December 1980 
instead of December 1982). The current fill schedule calls for a storage 
level of 250 million barrels by the end of 1978. 

The fiscal }^ear 1978 appropriation of $2,798,933,000 plus a supple- 
mental appropriation of $383,173,000, provides funds for the purchase 
of an estimated 220 million barrels. The Department is considering 
a second supplemental appropriation request of $115 million in order 
to secure sufficient fiscal year 1978 funds to purchase an additional 
30 million barrels which would bring the total to 250 million barrels 
by the end of 1978. 



28 

A decision to seek the second supplemental appropriation in fiscal 
year 1978 is being held up pending the completion of an evaluation of 
the volume of oil which will be in storage by the end of 1978. In the 
event that the target of 250 million barrels by that date is found to 
be unattainable, the additional funds may not be sought in fiscal 
year 1978. 

The fiscal year 1979 budget request of $4,129,280,000 will provide 
funding for the purchase of an additional 250 million barrels and its 
transportation to storage sites. The Department plans to purchase as 
much as 180 million barrels in fiscal year 1979 and the remaining 70 
million barrels in fiscal year 1980. Funds are also provided for the initi- 
ation of design and construction of additional storage facilities for 250 
million barrels thereby increasing overall storage capacity to 750 
million barrels. The administration plans to submit an amendment 
to the SPR plan which will authorize the storage of 1 billion barrels by 
3985. 

The committee will review closely these plans for fiscal year 1979 
and outyears and may authorize fully the requested funding for the 
Strategic Petroleum Reserve. 

9. ENERGY INFORMATION AND REGULATION 

This program area includes three principal agencies: the Energy 
Information Administration, the Economic Regulatory Administra- 
tion, and the Federal Energy Regulatory Commission. 

For the program area of energy information and regulation the 
President's proposed budget for fiscal year 1979 would authorize 
$167,125,000. As discussed herein, the committee estimates an in- 
crease of $73,100,000 in budget authority for this program area. 

Office oj Minority Economic Research and Development 

The energy conservation legislation pending in conference includes 
an authorization of $2 million in fiscal year 1979 to the Department 
for the establishment of an Office of Minority Economic Research and 
Development. This Office is to provide the Secretary with an analysis 
of the impact of energy programs — on the minority community and 
also to serve as a source of information and managerial and technical 
-lance for minority business enterprises and educational institu- 
tions seeking to participate in the programs of the Department. The 
Office is required to spend no less than 50 percent of its appropriated 
funds for loans to assist such enterprises or institutions in obtaining 
contracts with the Department. The committee recommends funding 
for this office in fiscal year 1979. 

Energy Information Administration 

The energy information functions of the Department of Energy 
may be substantially underfunded. Tlic Energy Information Adminis- 
tration was established under the Energy Conservation and Production 
Act as a quasi-independent entity within the Department with a 
responsibility to serve the energy information needs of the Depart- 
ment, the Congress and the public. This independence is restated in 
the Department of Energy Organization Act. 

The Congress intended, an the DOE Act provides, that an inde- 
pendent review and assessment of the activities be conducted annually 



29 

by the professional audit review team (PART). The fiscal year 197$ 
budget request of EI A to the Secretary of Energy was responsive to 
the priority areas identified by the first report of PART submitted 
on December 5, 1977. 

Priority areas identified include improvement in the validation of 
basic data, establishment of analytical capability which can serve 
the needs of Congress and the public, in addition to the executive 
branch, without being overloaded with work for the executive branch, 
and increased efforts to improve the accuracy and credibility of 
EIA's modeling and forecasting. In each of these areas the President's 
request is significantly below the needs estimated by the Administrator. 

The Congress sought to establish a credible and independent Energy- 
Information Administration. The initial years of operation of this 
Administration are viewed as critical by the committee in encouraging 
the establishment of an organization consistent to congressional 
intent. Because of this, the committee attaches added importance 
to the views of the Administrator in assessing his budget needs, and 
expects that additional funding in excess of the President's request 
may be justified. The committee estimates that up to $34 million 
in additional funds may be needed to fully support needed programs. 

Regulatory Activities 

The primary mission of the regulatory programs of the Department 
is implementation of the intent of Congress as represented in a number 
of relevant statutes, including the Federal Power Act, the Natural 
Gas Act, the Emergency Petroleum Allocation Act of 1973, the Energy 
Supply and Environmental Coordination Act of 1974, the Energy 
Policy and Conservation Act, the Energy Conservation and Produc- 
tion Act, the Emergenc}^ Natural Gas Act of 1977 and the Department 
of Energy Organization Act. 

These programs encompass the management of mandatory price 
and allocation controls on crude oil, residual fuel oil and refined 
petroleum products, including the monitoring and analysis of the im- 
pact of controls, the establishment of just and reasonable natural gas 
pipeline rates and rates for interstate sales of electric energy at 
wholesale, the preservation of a sound and competitively viable 
petroleum industry, the preparation and analysis of contingency 
programs for use in an energy emergency and a substantial number oJf 
other tasks with broad impact on the domestic economy. 

Economic Regulatory Administration 

The regulatory programs of the Economic Regulatory Adminis- 
tration with respect to crude oil, natural gas liquids and refined 
petroleum products appear to be adequately funded in the President's 
fiscal year 1979 request of $60,050,000, an increase of 7.2 percent over 
the Administration's estimate for fiscal year 1978. The committee 
intends to carefulh'- review these prgorams in hearings in connection, 
with the annual authorization legislation. 

Federal Energy Regulatory Commission 

The Federal Energy Regulatory Commission (FERC) was estab- 
lished by the Department of Energy Organization Act as an independ- 
ent adjudicatory body within the Department, The FERC has 
acquired many of the most difficult regulatory issues facing the 



30 

Department, has inherited an unacceptably large backlog of cases 
from its predecessor, the Federal Power Commission, and will receive 
substantial new responsibilities as a result of the energy legislation 
currently pending in conference committee. 

The Commission estimates that up to $12 million in additional 
funds may be required to carry out functions assigned the FERC 
in pending electric and natural gas utility rate reform legislation 
and the natural gas pricing bill. The FERC also estimates that a 
minimum of $23 million in additional funds will be required to 
strengthen the ability of the FERC to carry out its functions under 
existing law. 

These functions include special, one-time tasks such as determina- 
tion of the tariff for oil transported through the Trans Alaska Pipeline, 
analysis of the Alaska Natural Gas Project and management analysis 
of issues processed by the Federal Energy Regulatory Commission. 
In addition, the President's budget does not appear to adequately 
account for the fiscal year 1979 pay raise and does not reflect a fiscal 
year 1978 reprograming request which has been deferred by the House 
Appropriations Committee. 

The committee tentatively concurs with the Commission estimates 
of its needs. Of particular importance in the view of the committee 
is the acquisition by the Commission of a capability to streamline 
processes by identifying common features among groups of filings 
which contribute to the enormous volume requiring Commission 
action. If this volume cannot be more effectively handled through 
use of the results of new generic proceedings or improved manage- 
ment techniques, the likelihood is that further increases in FERC 
budgetary requirements will result. The committee intends to hold 
further hearings to examine ways in which the FERC procedures 
can be improved, and believes that its estimate of approximately 
$35 million in extra funding above the President's request is prudent 
at this time. 

The major objective of the hydro resource program of FERC is 
to issue and administer the licensing and inspection of hydroelectric 
projects. Two major tasks are included in this portion of the budget: 
(a) water resources analysis and (b) hydroelectric project licenses. 

Recent dam failures together with current congressional interest 
in expanding the hydroelectric potential, especially for existing dams, 
suggests that the dam safety program should be expanded. 

In addition, if the congressional proposal to stimulate low-head 
hydro facilities is passed, the pressure on this office will be increased 
dramatically. 

Therefore, the committee estimate includes $1.2 million to improve 
the processing of hydroelectric project licenses and for dam inspection. 

In summary, the committee recommends a $37.1 million increase 
in the fiscal year 1979 budget authority of the Federal Energy Regu- 
latory Commission. 



31 



10. BASIC SCIENCES 



The Department of Energy activities include a number of basic 
research efforts whose origins are traced back to the Atomic Energy 
Commission and are most logically placed within the Department 
of Energy. These basic sciences programs, which are a necessary part 
of our national commitment to basic research in the physical and 
life sciences to insure that we continue exploration of the frontiers 
of knowledge, include life sciences and biomedical research, high 
energy physics and nuclear physics. 

The general support within the budget review process for these 
programs resulted in an increase in funding for other than life sciences 
research. The overall operating category increased compared to the 
fiscal year 1978. However, the requested $306,600,000 does not keep 
pace with inflation. The committee will review whether additional 
funds for the basic sciences programs can be justified in light of 
general budgetary constraints. 

A preliminaiy review of the plant and capital equipment expendi- 
tures, of $49,800,000 for the basic sciences program indicate in 
general sufficient support for the new and on-going projects, with 
only a few possible exceptions. The committee may add as much as 
$10 million to this program area for those projects. 

The President's proposed budget includes $426.3 million in fiscal 
year 1979 for general science and basic research programs of the De- 
partment of Energy. The committee recommends a $10 million increase 
in budget authority. 

11. DEFENSE ATOMIC ENERGY ACTIVITIES 

The Committee on Energy and Natural Resources shares jurisdic- 
tion with the Committee on Armed Services concerning three programs 
which have potential implications for civilian energy applications. 
They are Inertia! Confinement Fusion, Naval Reactor Develop- 
ment, and Nuclear Materials Security and Safeguards. 

At present, the defense aspects of these programs are the principal 
determinant of the fiscal year 1979 funding level. This committee, 
however, will review these programs and make its recommendations 
to the Committee on Armed Services concerning funding for the 
civilian applications of these programs. 

12. SUMMARY 

For the Programs of the Department of Energy, the President's 
proposed budget for fiscal year 1979 would authorize $12,767,830,000. 
The committee estimates, as discussed herein and shown in the sum- 
mary table, a $1,475,421,000 increase in budget authority for the 
Department of Energy. 



32 

DEPARTMENT OF ENERGY 



President's 

request, 

fiscal year 

1979 



Committee 

estimates, 

1979 



Committee 

increase 

(decrease) 



Atomic energy defense activities (053): 

Budget authority 2, 829, 083 

Budget outlays 2, 535, 833 

General science and basic research (251): 

Budget authority 426, 300 

Budget outlays 433, 014 

Departmental operations (276): 

Budget authority 509, 860 

Budget outlays 459, 553 

Energy supply: Research and development (271): 

Budget authority 2, 670, 362 

Budget outlays 2, 628, 262 

Energy supply: Production, demonstration, and distribution (271): 

Budget authority 564, 116 

Budget outlays. 603, 647 

Environment (271): 

Budget authority 208, 588 

Budget outlays 201, 038 

Energy conservation (272): 

Budget authority 1, 009, 563 

Budget outlays 720, 609 

Power marketing (271): 

Budget authority 127, 473 

Budget outlays 162, 739 

Emergency preparedness (274): 

Budget authority 4, 255, 360 

Budget outlays 2, 486, 409 

Energy information and regulation (276): 

Budget authority 167, 125 

Budget outlays 162, 406 

Department of Energy, grand total: 

Budget authority 12, 767, 830 

Budget outlays 10, 393, 510 



2, 829, 083 

2, 535, 833 

436, 300 
443,014 

509, 860 
459, 553 

3, 420, 362 
3, 128, 262 

989, 125 
892, 647 

230, 000 
211,038 

1,197,063 
870, 609 

135,873 
163, 739 



255, 360 
486, 409 



240, 225 
212,406 



14,243,251 
11,403,510 



10, 000 
10, 000 



750, 000 
500, 000 

425, 009 
289, 000 

21,412 

10, 000 

187, 500 
150, 000 

8,400 
1,000 



73, 100 
50, 000 



1,475,421 
1,010,000 



B. Department of the Interior 

1. ADVISORY COUNCIL ON HISTORIC PRESERVATION 

In 1976, the Congress enacted legislation which established the 
Advisory Council on Historic Preservation as an independent agency 
in the executive branch. Prior to 1976, the Council, which was created 
by the Historic Preservation Act of 1966, was staffed by National 
Park Service personnel. 

The Council is responsible for: 

1. Advising the President, Executive Agency heads, and the 
Congress on needed innovations and modifications in policies, 
programs, practices, and legislative authorities relating to his- 
toric preservation; 

2. Administering section 106 of the National Historic Preserva- 
tion Act relating to the assessment of the public interest in con- 
flicts between Federal agency actions and the preservation of 
historic properties; and, 

3. Furthering public interest and participation in historic 
preservation; Federal, State, local and private preservation 
activity ; training and education in the field of historic preserva- 
tion; and development and dissemination of preservation 
information. 

In addition, the Council has statutory mandates relating to inter- 
national activities, historic railway stations, public buildings, and 
landmarks threatened by strip mining. 

The President's request proposes $1,553,000 in fiscal year 1979 for 
salaries and expenses. The committee rer-ommends that this be 
increased to $2 million as authorized by Public Law 94-422. However 
the committee wishes to add one clarifying remark regarding the use 
of a portion of this $2 million. The amount requested by the ad- 
ministration, $1,553,000, contains $369,000 which is earmarked for the 
Council's proposed new responsibilities for natural area preservation 
which will presumably be similar to the Council's present responsi- 
bilities for historic preservation. 

An increase of 10 positions for natural area preservation also has 
been requested by the Administration. These changes are being 
proposed in conjunction with the national heritage program (see 
Heritage Conservation and Recreation Service). 

In the committee's judgment until legislation granting the Council 
new responsibility is received and considered by this committee the 
Council should operate under its current statutory mandate. 

2. BUREAU OF LAND MANAGEMENT 

For years, the Bureau of Land Management, the largest Federal 
land management agency with jurisdiction over 60 percent of the 
federally owned land and 20 percent of the Nation's entire land base, 

(33) 



34 

found its management responsibilities impeded by its dependence on 
a vast number of outmoded public land laws which were enacted when 
disposal and largely uncontrolled development of the public domain 
were the dominant themes. Unlike the Park Service or the Forest 
Service, the BLM had no "organic act" to guide and provide authority 
for its actions. With uncertainty as to the continuation of its lands in 
Federal ownership and the lack of a well-defined mission within its 
confusing and often contradictory statutory base, the BLM has not 
been very successful in the competition for scarce Federal land man- 
agement funds. However, on October 21, 1976, the President signed 
into law an organic act for the BLM — the Federal Land Policy and 
Management Act of 1976 (FLPMA) — which repealed many of the 
outmoded public land laws and provided the agency with a coherent 
mandate and sufficient authority to implement it. Also, in 1976, the 
Congress passed the Payment in Lieu of Taxes Act (PILT Act). 

In response to these acts, in fiscal year 1977 the Interior Department 
reprogramed $4.1 million to meet the most urgent mandates of the 
FLPMA and requested a $100 million supplemental for the PILT Act. 
For fiscal year 1978, Presidents Ford and Carter asked for $14,550,000 
in increases to meet the requirements of the Organic Act ($44,550,000) 
and the PILT Act ($100 million). Last year this committee requested 
a $42,470,000 increase over the President's fiscal year 1978 request 
and the appropriation process resulted in a $10,366,000 increase. For 
fiscal year 1979, the President has asked for an increase ($52,086,000) 
in the agency's budget over the prior year's appropriation. The mag- 
nitude of this increase is actually less than it appears, however, because 
much of it is accounted for in a change in financing of "firenghting 
and rehabilitation". Starting with fiscal year 1979, this item will be 
financed in the initial appropriation rather than in a supplemental 
appropriation which has been the normal funding practice in prior 
years. This financing change amounts to an apparent increase of 
$25,250,000 that does not provide any real program growth. When 
this financing change is subtracted, the actual program increase pro- 
posed is $26,836,000 over the fiscal year 1978 appropriation. 

The committee concurs with the increased emphasis being placed 
on the Bureau's funding needs, but does believe that the fiscal year 
1979 budget proposal is inadequate. Section 318 of FLPMA required 
the Secretary of the Interior to submit last year a proposal for a 
4 year (fiscal years 1979 to 1982) authorization for most of the Bureau's 
programs. This proposal was tc include funding levels which the 
Secretary "determines can be efficiently and effectively utilized in 
the execution of his responsibilities for each such program, function, 
or activity, notwithstanding any budget guidelines or limitations 
imposed by any official or agency of the executive branch." The 
Secretary's submission (S. 2234) calls for $100,100,000 more in the 
comparable budget items in fiscal year 1979 than does the President's 
budget request. The committee agrees that the Bureau "can effec- 
tively and efficiently" use additional funds in certain budget cate- 
gories, principally for renewable resource planning and management, 
and makes recommendations for additions to those categories. 

Jn sum, the committee recommends additions which would add 
$90,867,000 to the $485,924,000 fiscal year 1979 BLM budget request 
for a new total of $576,791,000. This committee's recommended 



Amount 


Ceiiings 


(thousands) 


(FTP) 


$9,928 


183 


3, 1G0 


43 


2,500 


48 


2,300 


40 


23,102 ... 




2,500 


71 


4,000 


51 


3,437 


35 


40,000 


10 



35 

increases above the President's proposal are $9,233,000 less than the 
total increase over the President's proposal contained in the request 
for fiscal year 1979 made by the Secretary of the Interior in his 
quadrennial BLM budget request. 

The funding increases recommended by this committee will be 
largely meaningless unless full time permanent personnel ceilings are 
increased commensurate with them. 

Additional ceilings which should be associated with the recom- 
mended funding increases are shown in the following table: 

BUREAU OF LAND MANAGEMENT 



Management of lands and resources: 
Renewable resources management: 

Range management-.. '. 

Recreation management. 

Soil, water and air 

Wildlife habitat 

Energy and minerals management: Energy offshore 

Planning and data management: 

Planning 

Data management.. 

Acquisition, construction, and maintenance 

Mineral impact development loans 

Total, Bureau of Land Management 90,864 481 

Management oj Lands and Resources 

The most critical budgetary needs of the BLM are found in the 
Management of Lands and Resources appropriation account. The 
committee recommends an addition of $47,430,000 to the $275,368,000 
total proposed for this budget category in fiscal year 1979. 

Renewable Resource Development, Protection and Management 

The seriously deteriorated state of the BLM's land base was 
disclosed in detail in the agency's 1975 Range Condition Report to the 
Senate Appropriations Committee (discussed above). These findings 
were reiterated in the July 5, 1977, GAO report, Public Rangelands 
Continue to Deteriorate. In addition, the various provisions of 
FLPMA require the Agency to place increased emphasis on this 
category. The Committee recommends increases over the President's 
request of $90,301,000 for this subcategory in four items for a total 
addition of $17,828,000. 

Range Management. — This committee has been particularly con- 
cerned with the deteriorated state of the BLM range. Last Congress, 
the Senate passed the National Rangelands Policy Act which author- 
ized a 30 year, $900 million program (similar to the 20 year program 
proposed by the BLM in the Report) to rehabilitate BLM rangelands. 
The only provision enacted into law last Congress directly affecting 
range rehabilitation work was section 401 of FLPMA which raised 
from 25 percent to 50 percent the amount of grazing fees to be used 
for range improvements. The purpose of this provision was to increase 
Federal expenditures for grazing land improvements in the Range 
Improvement Fund not simply to offset future reductions in direct 
appropriations for that purpose. However, as the Interior Secretary, 
prior to the passage of FLPMA, had used his discretionary authority 



36 

to allocate over 40 percent of the grazing fees to range improvements, 
this provision did not dramatically increase the funding of range work. 
In fact, even with the proposed increase in the level of grazing fees 
this year, section 401 could be expected to add only $700,000 to the 
moneys available for range improvement in fiscal year 1979 — far less 
than the average of $30 million which would be authorized annually 
in the National Rangelands Policy Act. The committee expects to 
report a range rehabilitation measure again this Congress (see Legisla- 
tive Action Items). 

As the proposed $31,357,000 "range management" budget item is 
identical to the 197S appropriation, this item would suffer a reduction 
in real dollars due to inflation. Even when the $10 million total of the 
separate Range Improvements category (the 50 percent of grazing 
fees in the Range Improvement Fund) is considered the total increase in 
funding for range management over the fiscal year 1978 appropriation 
level is only $1,728,000. In all probability, this increase will not be 
realized because the House has passed, and the Congress will almost 
certainly enact, a moratorium on the increase in the public land grazing 
fees for this year's grazing season (see Legislative Action Items). The 
entire $1,728,000 increase is dependent on the receipts from that 
contemplated increase in grazing fees. 

Some range improvement work is constrained by the NRDC v. 
Morton suit until completion of the Allotment Management Plan 
Environmental Impact Statements required by the court order. The 
Department has stated, however, that certain range improvement 
work which does not significantly affect the environment can be 
undertaken. The Committee believes that such work should proceed 
as expeditiously as possible so as to prevent unnecessary further 
environmental degradation of BLM rangelands and unnecessary 
curtailments in range use. Furthermore, the committee wishes to 
provide the BLM with all the funds it can effectively use to expedite 
the Allotment Management Plans preparation process so that needed, 
well-planned range improvements and rehabilitation work now cir- 
cumscribed by the court order may be begun at the earliest op- 
portunity. 

Accordingly, pending enactment of a rangelands rehabilitation bill 
this year, the committee recommends an increase of $9,928,000 in the 
proposed $31,357,000 budget for the range management item. 

A sum of $1,728,000 would be added to replace the $1,728,000 which 
the BLM expected to be added to the Range Improvement Fund by 
the receipts from the proposed increase in the level of public land 
grazing fees but which Congress will likely deny to the agency by the 
enactment of a moratorium bill. A total of $6,900,000 would also be 
added to this budget item to provide for a modest acceleration of range 
improvement work to halt deterioration of BLM range in critical 
condition and to increase the Bureau's capability to undertake the 
type of range rehabilitation program which would be required by the 
proposed range rehabilitation bill. The additional funds would be 
allocated as follows: $500,000 for environmental assessment; $3,400,- 
000 for project development; $1 million for maintenance; and $2 
million for use supervision. Finally, $1,300,000 should be added to this 
budget item for wild horse and burro inventories and research (in- 
cluding research on temporary sterilization techniques). In oversight 



37 

hearings on the Wild, Free Roaming Horses and Burros Act of 1971, 
this committee has repeatedly urged the agency to improve its manage- 
ment of the animals so as to avoid unnecessary damage to the range 
from overpopulation. The committee has requested more accurate 
population counts and research, particularly on innovative methods 
of controlling herd increases, as prerequisites to better management. 

Recreation Resource Management. — The committee recommends an 
addition of $3,100,000 to the proposed fiscal year 1979 budget total of 
$17,548,000 for this item. This addition would partially fulfill this 
committee's continual requests for significant increases in Federal 
land management agencies' recreation budgets. To provide a sufficient 
level of interim management for the California Desert to protect its 
resources pending completion of the plan required by FLPMA, an 
additional $1,400,000 is recommended. An increase of $1,200,000 is 
recommended to permit the Bureau to designate an additional 10 
million acres as areas open, closed, or restricted for off-road vehicles 
in accordance with the President's Executive order. This will allow the 
agency to maintain a schedule which will result in the designation and 
management of all lands concerning ORV use by 1987. To increase the 
acreage covered by inventory plans and interim management of caves 
and paleontological and unique biotic phenomena from 30 million to 
35 million acres an increase of $100,000 is recommended. Finally, an 
additional $400,000 is recommended for interim management of study- 
ing of, and planning for nationally significant rivers and trails on a 
schedule which would result in the preparation and implementation of 
400 plans by 1982. The proposed increase in fiscal year 1979 would 
permit the preparation of 40 more plans than the 100 prepared in 
fiscal year 1978. 

All of these recommended increases in the recreation management 
budget item are identical to the increases proposed for fiscal year 1979 
in the quadrennial BLM authorization submittal of the Secretary of 
the Interior. 

Soil, \\ ater and Air. — This budget item covers much of the Bureau's 
inventory work. By the Bureau's own admission (supported by 
numerous GAO reports), the agency's resource data base is woefully 
inadequate for the aggressive planning efforts that FLPMA and other 
recent statutes, and NRDCv. Morton and other recent court decisions, 
demand. If the Bureau were to attempt to plan, and prepare EIS's on 
its planning, with +he present data base, there is little question that 
court suits would follow and decisions on the adequacy of the EIS's 
would go against the Bureau, thus delaying further much of the 
Bureau's actual, on-the-ground program work. The President's pro- 
posal for a $4,031,000 increase over the fiscal year 1978 appropriation 
embodies recognition of the need to expand the resource inventoiy 
effort, and to do so quickly, so as to permit the agency to meat statu- 
tory and court-ordered planning deadlines. However, the Secretaiy 
proposed a much greater increase — $6,100,000 — for this budget item 
in fiscal year 1979 in his quadrennial BLM authorization submittal. 

The committee believes that, to encourage the fastest possible 
] lanning effort as discussed above in the range management item, a 
further increase of $2,500,000, or a total increase of $6,531,000, ap- 
proximately the Secretary's request in his 4-year BLM authorization 
submission, is reauired. This would raise the President's proposal of 
$15,524,000 to $18,024,000. 



38 

Wildlife Habitat Management. — The committee recommends that 
$2,300,000 be added to the $8,120,000 requested by the President for 
this budget item. The President's request contained a program increase 
of $1,500,000 but the Secretary of Interior requested a $3,500,000 
increase in fiscal year 1979 in his quadrennial BLM authorization 
submittal. The committee supports the full $3,500,000 increase 
requested by the Secretary. Testimony in the November 23, 1977, 
oversight hearings on the Sikes Act conducted by the Subcommittee 
on Resource Protection of the Committee on Environment and Public 
Works confirmed that the States are fully ready to expend additional 
wildlife habitat funding. The committee emphasizes that the pro- 
posed increase can be easily absorbed as this is one program area 
where plans are completed despite critically low personnel ceilings 
because the habitat improvement work under Sikes Act cooperative 
agreements is largely conducted by the States or under contract. This 
recommendation to increase this budget item by 43 percent over the 
President's proposal and 78 percent over the fiscal 3^ear 1978 level is 
made necessary by the long neglect of wildlife — particularly wildlife 
habitat on public lands — in the Federal budget. About 40 percent of 
the wildlife and fish habitat on BLM land is in unacceptable condi- 
tion. The percent decline from satisfactory condition to unsatisfactory 
condition is about 3 to 4 percent annually and there is a concomitant 
declinejinj wildlife populations. The current level of funding of about 
one penny per acre for wildlife habitat management programs does 
not permit BLM to meet its responsibilities. A small portion of the 
recommended increase ($300,000) will be used to insure that wildlife 
inventorying efforts will keep pace with the expedited soil, air, and 
water inventorying efforts, and various expedited planning efforts, 
particularly the allotment management plans preparation activities, 
which the committee seeks to encourage elsewhere in this budget 
recommendation. 

Energy and Minerals Management 

The President has requested reductions from the 1978 appropriation 
level in the agency's energy minerals program of $16,959,000 
( — $465,000 in Energy Onshore; -$18,104,000 in Energy Offshore; and 
+$1,610,000 in Nonenergy Onshore) from the fiscal year 1978 ap- 
propriation level and $20,087,000 from the fiscal ycsir 1978 base. The 
committee recommends an increase of $23,102,000 over the President's 
$78,619,000 Energy and Minerals Management request. 

Energy Onshore. — The entire redaction in the Energy Onshore cate- 
gory is in the coal leasing program. The coal program is reduced by 
$1,750,000 from the fiscal year 1978 appropriation level of $19,102,000. 

Although the committee makes no recommendation to restore the 
cut in the coal leasing program at this time, it notes that it will 
promptly urge an increase in the appropriation or passage of a supple- 
mental appropriation if the President's request should prove insuffi- 
cient to administer the program once its funding needs are better 
known. 

Energy Offshore. — The President's budget would reduce the Outer 
Continental Shelf baseline studies program by $23,102,000 from the 
fiscal year 1979 base. This reduction is partially offset by an increase 
of $4,600,000 for oil transportation studies, for a net reduction of 



39 

$18,500,000 from the fiscal year 1979 base and $18,104,000 from the 
fiscal year 1978 appropriation level. 

This program was assessed recently by the Commission on Natural 
Resources of the National Research Council in a report entitled "OCS 
Oil and Gas: An Assessment of the Department of the Interior Envi- 
ronmental Studies Program." The report makes numerous recommen- 
dations for changes in emphasis in the program from baseline to 
special studies and in its administration and management. However it 
does not recommend reductions in the program. 

A House-Senate conference will be convened shortly on S. 9, a bill 
which would amend the Outer Continental Shelf Lands Act to make 
numerous changes in the offshore oil and gas leasing program and to 
protect the marine and coastal environment. This bill would require 
significant additional environmental studies. It seems imprudent to 
the committee to reduce the BLM research budget at the very time the 
Congress is expected to expand research requirements. The committee 
would prefer to see these research funds remain in BLM's funding base 
and be reprogramed to more important, high priority special studies 
to assure that the absence of such studies does not delay offshore oil 
and gas leasing and development and to minimize the possibility of 
court suits which might delay such development. 

Accordinglv, the committee recommends an increase in the Presi- 
dent's $39,398,000 budget request of $23,102,000 to restore the budget 
item to the fiscal year 1978 appropriation level adjusted for salary 
increases, as well as provide for financing of oil transportation studies. 

Planning and Data Management 

The Federal Land Policy and Management Act of 1976 (FLPMA) 
placed particular emphasis on multiple use planning — an emphasis 
which the committee does Dot find reflected in the fiscal year 1979 
budget proposal of $23,743,000. The President's proposal reduces this 
subcategory by $1,044,000 from the fiscal year 1978 appropriation 
level and by $6,044,000 from the fiscal year 1979 request of the 
Interior Secretary in the quadrennial BLM authorization submission. 

The committee proposes an addition of $6,500,000 to the President's 
request. 

Planning for Multiple Use. — To insure that the various FLPMA 
and court-ordered planning deadlines are met and, if possible, ex- 
ceeded in a true multiple-use planning context the committee recom- 
mends a $2,500,000 increase in the Planning for Multiple Use budget 
item. This increase is identical to that requested by the Secretary of 
the Interior in his quadrennial BLM authorization submission. The 
increase would permit a slight acceleration in the present Manage- 
ment Framework Plan (MFP) preparation schedule and allow the 
BLM to focus on those lands subject to intensive energy development. 
Although approximately 80 percent of the BLM lands (excluding 
Alaska) are covered by MFP's many of the plans do not adequately 
assess soil, watershed, and other environmental values. In short, the 
plans are of widely varying quality because the first generation 
documents were prepared with limited resource inventory data, as 
discussed above. The Bureau has found that its plans have an average 
effective life of 4 to 6 years and has stated that it is finding the need 
for major revision in priority areas (e.g., areas requiring coal leasing, 



40 

range rehabilitation, timber sales, and wilderness review program 
action) to be greater than the need for new plans in the planning 
units not yet reached. The recommended increase would permit the 
Bureau to accelerate preparation of MFP's from the present 8-year 
cycle to a 6-year cycle and to meet planning priorities in the coal, 
range, timber and wilderness program areas. 

Data Management. — The Secretary proposed for fiscal year 1979 in 
his quadrennial BLM authorization submittal an increase in the data 
management item of $4,400,000 for development and implementation 
of automated data systems. The President proposed an increase of 
only $287,000 in this item over the fiscal year 1978 appropriation 
simply to cover salary increases. 

The committee recommends an additional increase of $4 million 
over the President's fiscal year 1979 proposal. This recommended 
increase is less than the Secretary's request in his quadrennial BLM 
authorization submittal because of schedule slippage that has occurred 
and will occur as a result of uncertainty over the funding of this item. 

Acouisition and operation of these data systems is critical to the 
BLM's planning efforts. It does no good to conduct resource inven- 
tories if the data obtained is not accessible to the planner. Without 
the data, the planner's work will likely not be sustained under judicial 
challenge. Presently, the BLM's data, inadequate though it may be, 
are not easily accessible to the planner. The data from the various 
resource inventories are often not compatible and may be situated in 
any of numerous Bureau offices. These data systems would be designed 
to synthesize and evaluate the data and retrieve it quickly for various 
users. If the Bureau is to meet or exceed its planning deadlines the 
automated data systems must be installed promptly. The increase 
should not be postponed until the fiscal year 1980 budget. 

Acquisition, Construction and Maintenance 

The committee recommends an addition of $3,437,000 to the Presi- 
dent's $17,683,000 request for this budget category. The President's 
request is $1,024,000 less than the fiscal year 1978 appropriation level. 

Acquisition, Construction and Maintenance. — The President has 
proposed an increase of $198,000 in this category. This sum is $2,502,- 
000 less than the proposed increase contained in the Interior Secre- 
tary's quadrennial BLM authorization submission. Those additional 
funds were for the construction of the Phase I Boise Interagency Fire 
Center. 

The Committee recommends an increase of $2,502,000 to insure 
construction on schedule. To delay expenditures for better fire protec- 
tion i> regarded by the committee as a false economy. 

The BLM has a large backlog of critically needed recreation con- 
struction. Without such construction, resource and environmental 
values will continue to suffer adverse imparts from heavy recreation 
The committee recommends an addition of $735,000 to the 
$580,000 in the President's fiscal year 1979 budget request. 

This increase would include $150,000 for survey and design; and 
$585,000 for construction of sanitary facilities in the Blanca Waterfowl 
Area, Colorado; rave protection facilities at various sites in New 
Mexico; viewpoint facilities at lunger Gorge, Oregon; and facilities 
at ( Hear ( 'reek ( amp, ( California. 



41 

Acquisition. — The President's fiscal year 1979 proposal calls for no 
increase in the acquisition subcategory, whereas the Secretary pro- 
posed a $200,000 increase for fiscal year 1979 in his quadrennial BLM 
authorization submittal. Section 205(a) of FLPMA originated in this 
committee out of concern for the lack of access for the public, timber 
purchasers and other users to vast acreages of the BLM lands which 
are effectively landlocked by private lands. This provision was 
drafted in the expectation that it would spur the agency to more 
aggressively acquire access easements. The lack of an increase in the 
fiscal year 1979 budget proposal would prohibit any such effort. 
Accordingly, the committee recommends the $200,000 increase re- 
quested by the Secretary in his quadrennial BLM authorization 
submittal. These additional funds would permit acquisition of 30 
additional easements providing access to 150,000 acres. 

Mineral Development Impact Loans 

Section 317(c) of the Federal Land Policy and Management Act 
of 1976 (FLPMA) establishes a program to provide loans to State 
and local governments which will be required to increase their ex- 
penditures to mitigate adverse, social, economic and environmental 
impacts from mineral leasing on public lands. The purpose is to in- 
sure that these governments will have the capability to plan and 
act ahead of these impacts and will not be faced by the necessity of 
simply reacting to those impacts with their share of Federal leasing 
moneys. 

President Carter proposed a $40 million addition to President 
Ford's fiscal year 1978 budget request to fund this program, He 
conditioned it, however, on the enactment of legislation to raise 
the loan interest rate above the 3 percent provided in FLPMA. 

On January 27, 1977, Senators Metcalf and Haskell, chairmen of 
the relevant subcommittees, and Senator Hansen, ranking minority 
member of the committee, wrote Interior Secretary Cecil Andrus 
pledging their support for the enactment of such an amendment to 
FLPMA. The Administration's proposal was submitted on August 31, 
1977. The Subcommittee on Energy Production and Supply has 
completed hearings on the coal leasing program during which this 
legislation was addressed. Although the committee is not prepared 
to render its support for any specific provision of the Administration's 
proposal, it does expect to report legislation which will raise the 
interest rate (see Legislative Action Items) . 

Accordingly, the committee recommends that $40 million be added 
to the Bureau of Land Management fiscal year 1979 budget under 
a new category entitled "Mineral Impact Loan Assistance." 

3. BUREAU OF MINES 

In fiscal year 1978, Congress authorized $203,040,000 for the pro- 
grams of the Bureau of Mines. These programs are organized around 
the three basic missions assigned the Bureau by Congress: (1) scientific 
and technological investigations; (2) collection and dissemination of 
mineral information; and (3) analysis and recommendations of U.S. 
mineral policies and programs. 

Although the missions of the Bureau remain unchanged, its program 
responsibilities have been reduced pursuant to the Federal Surface 

24-427—78 4 



42 

Mining Control and Reclamation Act (Public Law 95-87) and the 
Department of Energy Organization Act (Public Law 95-91). 

Research programs involving the examination of environmental 
effects of surface mining for coal have been transferred to the new 
Office of Surface Mining Reclamation and Enforcement. Similarly, 
there has been a shift of research and development programs aimed at 
increasing the productivity of solid fuel minerals to the new Depart- 
ment of Energy. 

The President's budget request of $121,329,000 for fiscal year 1979 
reflects the transfer of these programs. In addition, however, several 
ongoing environmental programs which the committee views as being 
particularly significant for the long-term balancing of national mineral 
needs against the need to preserve and enhance environmental values 
have been reduced or held at existing levels of funding. 

The committee recommends a fiscal year 1979 budget authority of 
$123,229,000 to adequately fund these ongoing programs. 

The recommended increase of $1,900,000 occurs in three areas. First, 
the committee recommends restoration of $1 million to maintain the 
environmental engineering systems program at its existing funding 
levels. The environmental engineering systems program perform base- 
line studies and investigations designed to assist State agencies where 
decisions must be made on permitting mining operations on large areas 
of land. 

Second, in the Data Collection and Analysis area the committee 
recommends an increase of $450,000 and 8 positions for the coordina- 
tion of two programs which are vitally important to the assessment of 
national mineral resources and the projection of national mineral 
reserves. One program is the Mineral Availability System (MAS) of 
the Bureau. The other program is a related but independent program 
within the Geological Survey, the Computerized Resources Informa- 
tion Bank (CRIB). 

The committee believes MAS is a potentially significant tool for 
mineral policy formation and resources management which has failed 
to achieve its potential. MAS, originally funded in 1972, could serve 
as a policy-related analytic aid, a management tool for structuring 
mineral data, gathering and analysis, and a mechanism for determining 
information priorities. 

Responsibility for the failure to measure up to this standard appears 
attributable to the unsatisfactory organizational structure and location 
of MAS within the Bureau and more fundamentally, what has been 
termed "a basic lack of administrative recognition in the importance 
and usefulness of the system. " 

The Bureau reportedly has completed in-house evaluations of MAS 
and incorporated the results into its 5-year plan. However, the com- 
mittee believes that a more effective approach would be to conduct 
a reevaluation jointly with the Geological Survey in order to establish 
an on-going coordinating system designed to bring about the meshing 
of the two programs in such a way as to assure ready access to data 
for the general public and for departmental decisionmakers. 

Third, under the heading of Mineral Lands Assessment the Com- 
mittee recommends an additional 15 full-time personnel and $450,000. 

This increase is necessary because recent legislation (Public Law 
95-150, Montana Wilderness Study Act of 1977, and the Endangered 



43 

American Wilderness Act of 1978, now before the President for signa- 
ture) has increased the acreage requiring mineral assessments. Public 
Law 95-150 provides for wilderness suitability review of nine areas 
totaling 973.000 acres to be completed by 1982. The Endangered 
American Wilderness Act of 1978 designates 17 areas for wilderness, 
a total of 1.3 million acres. Of the 17 all but the Gospel-Hump area 
in Idaho (206,000 acres) and the Spruce Creek Addition in Colorado 
(about 8,000 acres) need to have a mineral assessment study completed 
by 1983. The Gospel-Hump area must be completed by 1988 and the 
Spruce Creek Addition adjoining the Hunter-Fiyingpan Wilderness 
must be completed by 1980. 

The Bureau continues to be handicapped due to a trend toward 
increased sponsoring and financing of its research and data collection 
and analysis activities through contracts and grants. The depleted 
in-house capability resulting from this policy has caused conflict-of- 
interest problems, especially regarding foreign mineral reserves data 
collection. In the longer perspective, it has also shut off the flow of 
younger personnel into the ranks of the Bureau. Thus, as the median 
age level rises, the danger of severe depletion of competent and 
experienced staffing becomes even more real. 

Unfortunately, personnel levels have remained virtually static within 
the Bureau. In its fiscal year 1978 budget report the committee had 
emphasized the risk involved in a continuation of this reliance upon 
contracts and grants when it stated that "an in-house capability must 
be maintained to keep abreast of new technologies developed under 
contract so that the advanced technologies may be directed toward 
the most useful areas of inquiry and work in further contracts of 
in-house efforts." 

The committee is still of the same opinion. It therefore recommends 
that the Bureau's personnel ceiling be further increased by 20 positions 
to work in the mining environmental research program. 

4. BUREAU OF RECLAMATION 

Overview 

The basic objectives of the Federal Reclamation Program are to 
assist the States, local governments, and other Federal agencies to 
stabilize and stimulate local and regional economies, enhance and 
protect the environment, and improve the quality of life through the 
development of water and related land resources throughout the 17 
Western States and Hawaii. 

Reclamation projects, through a multiple-purpose concept, provide 
for some or all of the following benefits: municipal and industrial 
water supply, hydroelectric power generation, irrigation water 
service, water quality improvement, fish and wildlife enhancement, 
outdoor recreation, flood control, navigation, river regulation and 
control and related uses. Through contractual agreements with 
project beneficiaries, the Bureau arranges for repayment to the 
Government of reimbursable project costs resulting from construction, 
operation, and maintenance. Approximately 84 percent of all project 
costs are reimbursable. Interest is paid on costs allocated to power 
and to municipal and industrial water service. 

Major functions of the Bureau include: (a) investigation and 
development of plans for the regulation, conservation, and utilization 
of water and related resources (including basin-wide water studies 



44 

and new sources of fresh water supplies, power capacity, and energy) ; 
(b) research programs to maximize the use of resources, including 
weather modification; (c) design and construction of authorized 
projects for which the Congress has appropriated funds; (d) repair 
and rehabilitation of existing projects; (e) operation and maintenance 
of Bureau constructed facilities which are not transferred to local 
organizations; (f) review of operation and maintenance of Bureau 
built facilities which have been transferred to local organizations; 
(g) administration of the Small Reclamation Projects Act of 1956, 
and of loans for construction or rehabilitation of irrigation systems; 
and (h) negotiation, execution, and administration of the various 
contracts associated with the reclamation program. 

In 1976, Reclamation projects served municipal and industrial 
water to 16.1 million people in the Western States, served irrigation 
water to 9.4 million acres on 146,000 farms, produced crops with a 
gross value of $4.3 billion, produced 41.8 billion kilowatt-hours of 
electricity, and hosted 62.4 million visitor days at project related 
recreation facilities. 

Bureau facilities include 174 operating projects consisting of 320 
storage facilities 344 diversion dams, 14,400 miles of canals, 145 
pumping plants, 50 powerplants, and numerous other major features. 
Reclamation electric generating facilities have an installed capacity 
in excess of 9.7 million kilowatts or the equivalent of 97 average 
sized nuclear powerplants. 

For the past decade there has been a reluctance on the part of the 
various Administrations to further commit the Bureau of Reclamation 
to the construction of additional reclamation/irrigation projects. 
Xoted for their absence have been requests by the Administrations 
for the authorization of projects or the authorization of feasibility 
studies which would lead to structural solutions to problems of water 
supply and demand. Although recent appropriations requests have 
been the largest in the history of the program, the funds appropriated, 
have served to complete on-going construction projects and in effect 
phase out the program. Emphasis within the reclamation program is 
shifting from a construction orientation to that of caretaker. Of 
the 18 new study starts proposed in the Budget request for fiscal 
ycai- 1979, all are concerned with examining the potential hydro- 
electric development at existing facilities or expanding hydroelectric 
powerplants. In the aftermath of the worst drought in decades, there 
are no requests for funds to initiate drought related water supply/ 
water management investigations. 

At best, the Federal reclamation program is in a holding pattern. 
Controversy surrounds many aspects of the program and the Admin- 
istration is deeply committed to an analysis and redefinition of 
National water priorities. Until such time that the Administration 
and the Congress determine basic policy or that unforeseen demands 
for additional water supplies dictate structural solutions, program 
and funding levels will reflect inertia rather than initiative. 

The committee recommends that the Bureau of Reclamation 
program for fiscal year 1979 be increased by $111 million above the 
President's request of $622.4 million in the following program areas. 



45 

General Investigations 
The general investig 3 - m involves the economic engi- 

neering and planning activities preparatory to construction of pro- 
posed projects. For fiscal year 197S, the ' 

million. The basis for further reclamation irrigation activities rests 
upon {/fanning. F mding of investigation activities is an investment 
in the future capability of the Bureau of Reclamation in being able 
to move construction programs on a timely basis in response to local 
and national needs. The President's budget request in new appro- 
priations for fiscal year 1979 is $22.2 million which would allow 
continuation of 61 planning projects and initiation of IS new in- 
vestigations emphasizing increased hydroelectric generation. Because 
the committee believes that sufficient fun* ling should be allowed during 
fiscal year 1979 to accelerate and to initiate additional studies relating 
to both energy production and water manag . . . .it rec- 

ommends an increase in appropriations of SS million. 

i RehabUitati 

This program is the largest single item in the Agency's budget and 
consist- of funding of construction activities on authorized Federal 
reclamation projects. For fiscal year 197S. the Congress appropriated 
S550.6 million in new appropriations. The President's budget request 
in new appropriations for fiscal year 1979 is $480 million which would 
allow continued construction on 74 projects. The request does not 
include funds for the Auburn Dam project in California or the Garrison 
Diversion Unit in North Dakota. Both pro; ve been delayed; 

however, resolution of the problems causing the delays could provide 
the opportunity for construction to proceed during fiscal year 1979. 

The committee believes that sufficient budget authority should be 
allowed in fiscal year 1979 to permit construction on these or other 
projects in the event that related problems are resolved. Therefore, 
the committee recommends an increase of $55 million in budget 
authority. 

In addition, the President's budget request does net make provision 
for acceleration of on -going construction projects or initiation of con- 
struction on projects for which advanced planning will have been 
completed during the latter part of fiscal year 197S or early in 1979. 
The committee believes that an additional SS million is merited. 

Upper Colorado River Storage Project 
This budget category provides for advanced planning, construction, 
operation, and maintenance of project related facilities including facili- 
ties for the generation of electricity. For fiscal year 197^ the Congress 
appropriated S67.3 million in new appropriations. The President's 
budget request in new appropriations for fiscal year 1979 is $66.2 
million. In order to initiate construction on projects for which advanced 
planning will be completed prior to or during fiscal year 1979 and to 
accelerate on-going construction or planning, the committee recom- 
mends an additional S12 million for the program. 

Recreational and Fish and Wildlue Fac". 
This budget category provides for facilities associated with features 
of the Upper Colorado River storage project. The fiscal year 1978 



46 

appropriation was $4 million. The President's budget request for 
fiscal year 1979 also is $4 million. This program has been severely 
underfunded for several }~ears and the committee recommends an 
additional $11 million in order that the program may provide for 
increased demands in the area in a more timely manner. 

Loan Program 

This budget category provides for funding pursuant to the Small 
Reclamation Projects Act of loans or grants to non-Federal organiza- 
tions for construction or rehabilitation of small water resource projects. 
In addition, pursuant to the Distribution Systems Loan Act, loans 
can be made to organizations for the construction of irrigation and 
municipal /industrial water supply systems on authorized Federal 
projects. The Congress appropriated $27.7 million for fiscal year 1978. 
For fiscal year 1979, the President has requested $23 million. Of the 
10 projects underway, the President's request would provide funding 
for completion of seven. 

In the 22 years that the program has been in operation, 54 projects 
have been completed with loans totaling $114 million. An additional 
34 projects are under active consideration; however, the President's 
budget request for fiscal year 1979 does not include funding for initia- 
tion of any new projects. In light of the strong support evidenced by 
the water community for the program and on the basis of the impor- 
tance of the program to water conservation efforts, the committee 
recommends the addition of at least $17 million for fiscal year 1979 
to allow new project starts. 

5. HERITAGE CONSERVATION AND RECREATION SERVICE 

On January 30, 1978, Interior Secretary Andrus established the 
Heritage Conservation and Recreation Service (HCRS), formerly the 
Bureau of Outdoor Recreation (BOR). This action consolidates the 
former functions of the BOR with the XPS's Natural Landmarks 
Program and the Office of Archeology and Historic Preservation. The 
HCRS is to be the focal point within the Federal Government for the 
National Heritage Program requested by the President in his 1977 
Environmental Message. The HCRS will administer three major 
programs: 

Recreation: HCRS will continue to administer the Land and 
Water Conservation Fund, formerly administered b} r BOR. This 
includes the State grants-in-aid program for outdoor recreation 
as well as the Federal portion of the fund. 

Cultural: HCRS will administer the Historic Preservation Fund, 
manage the National Register of Historic Places, and assume all 
other historic preservation functions formerly administered by 
the NPS. 

Natural: IK 'US will create and manage a new National Register 

of Natural Areas similar to the existing National Register of 

Historic Pla 

The goal of HCRS over the next 5 veins is to identify, select, and 

protect eligible heritage resources in partnership with State and local 

governments. In order- to cany out this goal: (1) criteria for "national 

significance" of natural and cultural areas must be prepared by the 



47 

Secretary; (2) programmatic consolidation of historic and various 
natural area functions at the Federal level is contemplated within the 
next 3 years; (3) the Council on Historic Preservation is to be re- 
constituted and expanded into the Council on Heritage Conservation; 
and, (4) significant amounts of state-side money from the Land 
and Water Conservation Fund will be directed for the acquisition of 
natural areas. 

The committee notes that while considerable reorganization within 
the Department has already taken place in anticipation of a national 
heritage program, no legislation to establish such a program is pending 
before Congress nor has such legislation been transmitted by the 
administration. It is therefore very difficult for the committee to 
make recommendations regarding the potential budget impact of such 
a proposal in fiscal year 1979. 

Nevertheless, the President's proposed budget for fiscal year 1979 
would authorize $790,978,000 for the Heritage Conservation and 
Recreation Service. As discussed herein the committee recommends a 
$545,500,000 increase in budget authority for this program area, for 
a total of $1,336,478,000. 

Land and Water Conservation Fund 

The Land and Water Conservation Fund is the major source of 
land acquisition funding for the four Federal land-managing agencies, 
The current estimated backlog for all authorized but unacquired 
areas for these agencies is $1.6 billion. 

The committee notes that the administration has recommended a 
decrease of $12.1 million for the Forest Service's share of the land and 
water conservation fund. At the same time, the Forest Service has an 
identified backlog of about 1,503,624 acres at an estimated cost of 
$960,625,500. The committee strongly recommends an increase of $50 
million for the Forest Service's land acquisition program. These 
moneys should be used to begin acquisitions at those sites where 
willing sellers have been identified. 

While the authorization level of the land and water conservation 
fund has been increased substantially in recent years, the fund's 
relative purchasing power has not been greatly increased due to 
rapidly escalating land values aggravated by prolonged acquisition 
delays. Unless the funds which have been authorized by the Congress 
are appropriated, the growing backlog cannot be reduced 

The administration has recommended that approximately $100 
million of land and water conservation fund moneys be available for 
areas not yet authorized by Congress, but where enactment is antici- 
pated in fiscal year 1979. This includes $12.5 million for the Appalachian 
Trail land acquisition program. Subsequent to the submittal of the 
President's budget, the House of Representatives agreed to the Senate 
amendments to the Appalachian Trail measure, H.R. 8803, and sent 
it to the President. The measure contains an authorization of $30 
million for fiscal year 1979. The committee is confident that the 
measure will be enacted and, therefore, recommends full appropriation 
for this program in fiscal year 1979. 

The committee expects to complete action during the next year on 
several pending bills, including legislation to establish the Jean Lafitte 
National Historic Park, the Chattahoochee River National Recreation 



48 

Area, the Lowell National Cultural Park, and the San Antonio 
Missions National Historic Park. Each of these measures anticipate 
expenditure of a significant amount of land and water conservation 
fund moneys, making full funding of this program even more impor- 
tant. Additionally, full funding of the land and water conservation 
fund means an increase in the moneys available to the States through 
the State grant program. The States have the capability to match 
additional Federal dollars and should be encouraged to acquire out- 
door recreation resources as expeditiously as possible. 

Historic Preservation Fund 

The authorized level of appropriations for the Historic Preservation 
Fund is $100 million in fiscal year 1979 and $150 million in fiscal 
years 1980 and 1981. These authorizations are intended to provide 
matching grants to the States for purposes of preserving our national 
heritage. The administration has requested $45 million for fiscal 
year 1979. The committee recommends an increase of $55 million, 
for a total of $100 million for fiscal year 1979. 

The committee strongly urges that the Secretary of the Interior 
implement the 70/30 matching formula authorized by section 102(c) 
of the Historic Preservation Act of 1966, as amended. Likewise, the 
committee suggests that the Secretary revise the grant guidelines 
to (a) reward States that are aggressively carrying out the intent 
of the Congress to survey State historic properties and to acquire 
and develop such properties; (b) provide advance funding to States 
for approved programs; and, (c) assure that the Department of the 
Interior manage the grant program in a manner responsive to the 
intent of the act. The Secretary shall provide copies of the new 
guidelines to the respective committees within 60 days of the budget 
approval. 

The committee believes that additional personnel are necessary 
to effectively implement the program and recommends the addition 
of 15 positions. 

Preservation of Historic Properties 

The committee recommends an increase of $500,000 to support 
an additional 20 personnel spaces for administration of Historic 
Properties. These additional technical personnel are needed to process 
nominations and maintain the National Register. 

j. 1 bandon ed Railroad B ight-of- \\ T ays 

The program for the conservation and use of abandoned railroad 
right-of-ways for recreation purposes as authorized by the Railroad 
Revitalization and Regulatory Reform Act of 1976 is not within the 
committee's jurisdiction. However, the program is an exciting concept 
and is complimentary to the overall responsibility of the committee in 
insuring recreational opportunities for the public. The committed 
notes that although the program was authorized for a total of $20 
million during fiscal years 1976, 1977, and 1978, only $5 million was 
appropriated, Inspite of this meager funding level, there has been an 
overwhelming response to the program by interested local and State 
governments. Although the President's budget request for fiscal year 
1979 does not contain funds for this program, the committee urges 



49 



~<=> <= 



— o <-o 



E 


re 


E 




o 




o 




a 


roS 


<D 


Si en 


i. 


>a 








re 


E 
E 


Ll. 



— Sn ??° 



°°g 



^^ -r^ 



— CSJ 



"0 CD to O 
r^ o OO 

r-~ ^r no" 



en o 
oo o 

m* to 



CO 



I :! 

IE | c 

■ o 

a 

1 > 



re ^ >_ .r? 
CO-JO. 3= 



o «- . 
- ro co 
o o«a. 

S => p 



cp co as 

3,2 c 
o o w 



50 

that serious consideration be given by the committee of jurisdiction 
to including funding in the amount of $15 million for this program in 
fiscal year 1979. 

6. NATIONAL PARK SERVICE 

Congress, by the act of August 25, 1916, created the National Park 
Service to provide for the cohesive administration of the National 
Park System. The primary objective of the Service is to protect, 
preserve, and operate the designated units of the National Park 
System so that they may be enjoyed by present and future generations 
of Americans. There are presently 294 units of the S} r stem which will 
be visited by an estimated 282 million people in fiscal year 1979. 

Prior to a partial departmental reorganization by the Secretary of 
the Interior on January 30, the National Park Service had a second 
major objective which was to maintain and focus a national historic 
preservation program. The reorganization, accomplished by Secretarial 
Order No. 3017, created a new service — The Heritage Conservation 
and Recreation Service (HCRS). The new service, which succeeds the 
former Bureau of Outdoor Recreation (BOR) will assume responsi- 
bility for historic preservation through the transfer of the Office of 
Archeology and Historic Preservation, including the Historic Preser- 
vation Grants Program and the National Register of Historic Places, 
from the National Park Service. 

In addition, partial responsibility for the completion of water re- 
source, river, and trails studies has been shifted from the former 
Bureau of Outdoor Recreation to the National Park Service. 

Aside from these changes, however, the National Park Service will 
continue to cany out its primary function of acquiring, developing 
and managing units of the National Park System as designated by 
the Congress. In this regard, it is anticipated that the committee will 
be working very closely with the National Park Service and the HCRS 
during the next few years to attempt to meet the recreation and open 
space needs of the urban dweller. 

The President's proposed budget for fiscal year 1979 would author- 
ize $504,586,000 for the National Park Service programs. As discussed 
herein the committee recommends a $192,000,000 increase in budget 
authority for this program area. 

Construction 

The administration is recommending $121,328,000 for the construc- 
tion fund in fiscal year 1979, which is $40.1 million less than last year's 
request. In general terms, two types of construction activities are 
cairicd out under this category — (1) buildings, utilities and related 
facilities; and, (2) roads, trails, and parkways. The committee rec- 
ommends an increase of $41 million over the administration's request 
for these two construction-related activities. The committee believes 
that adequate annual expenditures for the stabilization and rehabili- 
tation of Federal investments are necessary to prevent future costs 
resulting from neglect. 

The committee recommends an additional $150 million in this 
category for the acquisition of additional lands to the existing Red- 
wood National Park should legislation expanding the part be enacted 
this Congress. The Senate version of the legislation, which is currently 



51 

in conference, provides that acquisition moneys come from the general 
fund of the Treasury, while the House version of the bill specifies 
the Land and Water Conservation Fund as the funding source. As 
this construction category serves as the Park Service's non-LWCF 
funding source for land acquisition, the committee wants to insure 
that necessary moneys are available for Redwood acquisition from 
this source. 

Operation of the National Park System 

The Administration has recommended that the subf unction of 
New Area Studies, under Operation of the National Park System, 
receive $360,000 to carry out an ongoing assessment of potential 
additions to the National Park S}'stem. Section 8 of Public Law 
94-458 directs the Secretary of the Interior to investigate potential 
additions to the National Park System and submit to the Congress at 
the beginning: of each fiscal year a list of not less than 12 such areas. 
This request is based on the committee's need for professional advice 
and recommendations on possible additions to the Sj-stem which both 
meet the established criteria and represent those national resources 
not already included in the S}^stem. 

The first set of studies received this year pursuant to section 8 is 
inadequate. If the committee is to utilize these studies in the formula- 
tion of public policy, the information presented must be up-to-date 
and thorough. The inadequate funding in the past year is reflected in 
the studies transmitted to the Congress this 3^ear. Therefore, the 
committee recommends an increase of $1 million for the preparation of 
these important studies. 

7. NATIONAL PETROLEUM RESERVE IN ALASKA 

Jurisdiction over the National Petroleum Reserve in Alaska was 
transferred from the Secretary of the Navy to the Secretary of the 
Interior on June 1, 1977. Section 104 of Public Law 94-258 directs 
the Secretary of the Interior to conduct a petroleum exploration of the 
Reserve. The U.S. Geological Survey has been charged with the 
responsibility for the exploratory activity. 

The original exploratory program planned by the Navy called for 
the drilling of 26 wells by the end of fiscal year 1980. In November 
1977, L T SCS evaluated that exploration program and determined that 
a minimum acceptable sampling could be accomplished by the drilling 
of 20 to 21 wells, plus followup or confirmation wells which might be 
indicated as the result of the fiscal year 1978 and fiscal year 1979 
drilling. The fiscal year 1979 budget proposes to reduce the original 
exploratory program of 26 wells to 19 wells and to terminate the 
exploration of the Reserve at the end of fiscal year 1979. 

Exploration of the Reserve is a major undertaking which will require 
persistence and sustained effort. Created in 1923, as Naval Petroleum 
Reserve No. 4, the NPRA today contains over 23 million acres or 
about 37,000 square miles. Seismic and geophysical data have indicated 
the presence of approximately 125 prospective structural oil traps 
which constitute valid exploration targets. 

The committee believes that the Nation's need for petroleum re- 
sources mandates the continuation of the search for oil and gas in 



52 






oo 
o"o~ 



Mi 



oo 

Is 

oo" 

oor~ 

(T3CSJ 



OO 

o o 
oo 



oo 
•cj-o 



.2.2 



^"d- to ( 



2 E 

II 

o c c : %> s 
gts-st; -!*. 

~ 3 > <» O c 

2-5 « si'l 



i-O o. 

roc = <u 



53 

NPRA. The Reserve is a potential energy treasure house and the 
effort must be made to inventory its assets. In a report to Congress 
in August 1976, the FEA pointed out that a delay in the realization 
of the potential economic benefits from the NPRA would be very 
costly. Assuming an 8-percent discount rate and constant real (i.e., 
adjusted for inflation) world oil prices, FEA found that a 1 year delay 
in realizing the net national benefits would cost the Nation about $312 
million. 

The committee has been informed by the Department that if sig- 
nificant discoveries or favorable indications are revealed by the 1978 
and 1979 drilling, the exploration program for fiscal year 1980 would 
provide for followup or confirmation wells. Despite this assurance, the 
reduction of $30.5 million from the original USGS budget request of 
$211.9 million is a matter of concern. The $30.5 million reduction will 
preclude the purchase and transportation of oil field hardware and 
fuel needed for the drilling of wells in fiscal year 19S0. The long lead- 
times involved in solving the logistical problems associated with drill- 
ing in the arctic require supplies to be procured and transported to 
that remote area a year before wells are to be drilled. 

Because the committee believes that followup or confirmation wells 
in fiscal year 1980 will be indicated by the results of the 12 exploratory 
wells to be drilled in 1978 and 1979, the $30.5 million reduction in the 
fiscal year 1979 budget should be restored. Without the funding capa- 
bility to acquire the drill pipe, casing, drilling mud, fuel, etc., during 
fiscal year 1979, it will be impossible to proceed with followup and 
confirmation wells in fiscal year 1980. Budget authority for the evalua- 
tion and assessment of NPRA in fiscal year 1979 should be $211.9 
million instead of the requested $181.4 million (an increase of $30.5 
million) . 

Section 104 of Public Law 94-258 requires that the Secretary of the 
Interior take such actions as may be necessary to continue to supply 
natural gas to the Native village of Barrow and other communities 
and installations at or near Point Barrow, Alaska. 

The program for exploration and development of the Barrow area 
gas fields is proposed to be postponed by the fiscal year 1979 budget 
until agreement is reached with non-Federal agencies to fund and 
install a modern gas distribution system at Barrow. The fiscal .year 
1979 budget request is $13 million below the fiscal year 1978 appro- 
priation for exploration and development of gas wells in the Barrow 
area and the proposed $1,771,000 will provide only for routine 
maintenance. 

The South Barrow gas field currently supplies the natural gas 
utilized by the Native village of Barrow and the various Federal 
installations and agencies in that area. The committee is informed that 
there is a possible water encroachment problem which threatens the 
reliability of the existing wells in that field. One well produces 60 per- 
cent of the gas production and if it were "to water-out" emergency 
measures would have to be taken to provide an alternate fuel to the 
municipal generating plant. USGS had planned to explore and develop 
adjoining gas structures in order to increase the margin of safety for 
gas supplies. The $37,723,000 requested for that program, however, 
was reduced to $1,771,000 in the fiscal year 1979 budget request. The 
committee recommendation represents a $35,952,000 increase. 

24-427—78 5 



54 

Postponing the exploration and development of new sources of 

natural gas appeal's to risk the population of a remote arctic com- 
munity to potential danger. There is reason to believe that the 
Federal Government is legally responsible for providing a modern, 
safe gas distribution system in the Barrow area. The Bureau of 
Indian Affairs has requested a Solicitor's opinion on this question 
and if legal responsibility is acknowledged, the delay of gas held 
development pending negotiations with non-Federal agencies for 
the funding of a new distribution system becomes ludicrous. The 
fact remains that the statute requires the Secretary of the Interior 
to provide natural gas to the community, irrespective of the instal- 
lation of a modern distribution system. 

The committee is of the opinion that the exploration and develop- 
ment of new natural gas supplies m the Barrow area should not be 
delayed while efforts are made to convince non-Federal agencies to 
fund a new gas distribution system, especially in view of the question 
concerning the legal responsibility of BIA to provide it. 

The program for exploration and development of the Barrow area 
gas fields should be increased by $35,952 million from the requested 
$1,771)000 to $37,723,000. 

In summary, the President's proposed budget for fiscal year 1979 
would authorize $186 million for activities of the Department of the 
Interior concerning the National Petroleum Reserve in Alaska. The 
committee recommends a $66,452,000 increase in this program area. 

8. OFFICE OF SURFACE MININC KEC1.AM ATIOX AM) ENFORCEMENT 

On August 3, 1977, the President signed into law Public Law 95-87, 
the Federal Surface Mining Control and Reclamation Act. Under 
its terms a new Office of Surface Mining Reclamation and Enforcement 
(OSMRE) was initiated within the Department of the Interior, to 
implement the law by regulating surface impacts of coal mining. 

Although Congress bad authorized $67.5 million for fiscal year 
197s for the new Office, the appropriation was delayed until the 
recent enactment of the Supplemental Appropriations Act, H.R. 9375. 
Consequently, severe limitations have been placed upon the Depart- 
ment's ability to fill some 800 new positions in the Office and take 
other steps necessary to meet the enforcement and application 
deadlines in the ad. 

The fiscal year 1979 budget proposed by the Office reflects the un- 
certainties inherent in this unfortunate situation. Since a major 
objective of the Office during fiscal year 197S and fiscal year 1979 is 
lo encourage and provide assistance to the States for their development 
of permanent regulatory and reclamation programs, the question of 
how many of the 26 coal-producing States would likely submit 
programs in time to be reviewed and approved by the Office during 
fiscal 1979 is very much to the fore. 

Seven States are considered by the Office as likely to submit perma- 
nent regulatory and reclamation programs in time for review and 
approval in fiscal year 1979. Assuming full State participation, fiscal 
year 1979 is expected to be the peak workload period for the Federal 
interim program inspection, which is required by law to back up 



55 

the Slate enforcement. The budget requests for fiscal year 1979 
therefore indicate what the projected workloads for botli State and 
Federal enforcement will require. 

The committee thus supports the President's proposed budget of 
$108,620,000 for the Office of Surface Mining Reclamation and En- 
forcement, with the addition of $8,500,000 for the establishment of 
mineral institutes on a permanent basis. 

Mi in rat Institutes 

A matter of interest to the committee is the mineral institutes 
budget request for fiscal year 1979; $5.7 million is appropriated in 
fiscal year 197S for these institutes, formally known as State Mining 
and Mineral Resources and Research Institutes and established under 
provisions of title III of the act. Nothing at all is budgeted for the 
mineral institutes in fiscal year 1979. 

It is difficult for the committee to comprehend how the newly- 
created mineral institutes can be expected to carry out their mission 
of training and research without continued funding. Therefore, to 
insure adequate funding of the mineral institutes program on an 
ongoing basis, the committee recommends an increase in fiscal year 
1979 to $8.5 million, with the understanding that the Department of 
the Interior and the Office of Surface Alining Reclamation and En- 
forcement will take all actions required by title 111 to fully implement 
congressional intent as to the establishment of mineral institutes on a 
permanent basis. 

Small Operators 

The committee is also concerned about the treatment of small 
operators under the act. During the interim period the Office will 
be required by law to assist small operators (those producing no more 
than 100,000 tons of coal annually) by financing the costs of qualified 
laboratories in making a determination of the probable hydrologic 
consequences of mining and reclamation operation^. The assistance, 
which will be financed through the abandoned mine reclamation 
fund, will also cover preparation of a statement on the chemical 
and physical analyses of core samples taken from existing or proposed 
mine sites. 

The committee expects to monitor the progress of the small oper- 
ators assistance program closely. It is apparent that the annual 
ceiling cf $10 million i>> overly restrictive. Legislation to increase 
the allowable amount for the program has been introduced and will 
be considered forthwith by the committee. 

9. PENNSYLVANIA AVENUE DEVELOPMENT CORPORATION 

The Pennsylvania Avenue Development Corporation (PADC) was 
established as a wholly owned instrumentality of the United States by 
act of Congress, October 27, 1972 (Public Law 92-578). The act 
directed the Corporatiou to prepare and implement a rehabilitation 
and development plan for Pennsylvania Avenue. Since May of 197."). 
when the plan was approved by the Congres-. the PADC has been 
implementing this development plan. 

The completion of this plan is expected between 1989 and 1991. 
During fiscal \(>i\v 1979, the PADC will continue the emphasis on 



56 

those activities wesl of the J. Edgar Hoover Building, including the 
Willard Hotel and (ho National Press Building. The emphasis in 
the next 5 years will shift from tin 1 west to the east side of the J. 
Edgar Hoover Building. Activities in the area will include multiple- 
use development sites (commercial and residential) and historic 
preservation. 

The President's proposed budget for fiscal year 1979 would authorize 
$27,235,000 for the Pennsylvania Avenue Development Corporation. 
The committee recommends a $j7,215,00Q increase in budget authority 
for this program area. This includes an additional $470,000 for salaries 
and expenses, $4,100,000 in borrowing- authority for land acquisition 
and development, and $2,645,000 for public development. These in- 
creases reflect both what the committee reported and what the Senate 
passed in 1975 in the way of authorization. The authorization level was 
reduced by the House prior to final enactment in 1976. 

The PADC 1 is operating under the 1972 enabling act, as amended in 
1976. Authorizations for salaries and expenses and public development 
expire at the end of fiscal year 1978. Borrowing authority for land 
acquisition and development expires at the end of fiscal year 1980. 
The committee expects to increase and extend these authorizations for 
fiscal year 1979 and beyond (see "Legislative Action hems"). 

10. TERRITORIES 

The committee's jurisdiction extends from (he acquisition of a 
territory up to and including resolution of its ultimate status (state- 
hood or independence). Jurisdiction over Hawaii and Alaska ceased 
under the territorial clause with the enactment of the Hawaii and 
Alaska Statehood Acts and for the Philippines upon independence. 
The committee's and the Congress exercise of the territorial clause 
with respect to the contiguous United States ended with Arizona's 
statehood. 

The Congress and the committee exercise identical authority 
over the Trust Territory of the Pacific Islands although the United 
States does not exercise sovereignty over that area. The more limited 
responsibilities and authorities of the United States in Antarctica 
also I all in t his category- 

The committee's jurisdiction extends to all aspects of incorporation 
and organization of these areas including, but not limited to, citizen- 
ship and/or natural status of the inhabitants; extension of Federal 
legislation including provisions of the U.S. Constitution; all matters 
of local governance; authorizations for civil governance including 
public works, education, transportation, and medical care; and 
ultimate disposition by statehood or independence. 

The major insular areas over which the committee has jurisdiction 
include American Samoa, Guam, Puerto Rico, the Virgin Islands, 
and the Trust Territory of the Pacific [slands (including the Northern 
Mariana [slands which will become a commonwealth on the termina- 
tion of the trusteeship agreement.) 

Approval of the covenant, winch provides for the Commonwealth 
of the Northern Mariana-, was the first step in the United States 
fulfillment of its obligation under a L947 trusteeship agreement with 
the United Nations. The covenant provides for the creation of ;i 



57 



moo 



O o o 

o o o 
moo 






i oo 



f. o oo 
mono 



tflO-t 
NOU1 

couoco 



.o 



=J oo 
ro o 

E°8 
g oo 

O TO OO 



T3 JZ-- 
TO =jj= 



= «- 

«» E ra 
o >.£: 
.2 "15 

Ot — • — 

a) jo — 



c o- 



a> "in 

Elcc 
E.2S 

O X 

old «r 



o.E 



1™ ^ 



m -a - 



2-a c- 
■JS W ~ 



~ c: "si 
a> ™ a> 

•is 

1'5 > 
</> u-o 
?? ^ u 

TO TO ^ 
CO -J flu 



TO 



o o 



-I =| 

C.= JO « 

O TO "" 

'.5 TO CO 

to *; a> o 

11 .R§ 
- 1'S-E: 

— Q. V* 



5S 

Commonwealth of the Northern Marianas under U.S. sovereignty; 
local self-government including: adoption of a local constitution 
by the residents of the Northern Mariana Islands; granting of citizen- 
ship or national status to the residents of the Commonwealth; and the 
extension of the provisions of the U.S. Constitution, treaties, and 
statutes, with some limitations to the Commonwealth. 

The total jurisdiction of the committee and the Congress en- 
compasses more than 2,000 islands and possessions including the 
areas previously cited as well as other possessions such as the Guano 
Islands: Palmyra: 1 lowland, Baker, and Jams Islands: Canton and 
Enderbury Islands; Johnston and Sand Islands; Kingman reef; 
Midway; Harvassaj certain of the Line Islands: Caroline Atoll, 
Christnui> Island; certain of the Ellice Islands; Funafuti Atoll. 
Nukufetarj Atoll. Xukulailai Atoll, and Nuraketa; certain of the 
Phoenix Islands; Bernie Atoll, Gardner Atoll, Hull Atoll, Mckean 
Atoll. Sydney Atoll, and Phoenix Atoll; certain of the Tokelau 
Islands, Atafu, Fafaofu, and Nukunon; and certain of the Northern 
Cook Islands; Danger, Manahiki. Rakahanga, and Penrhyn. 

The Office of Territorial Affairs in the Department of the Interior 
lias primary responsibility for most specific federal programs. The 
Department of Defense exercises some specific program responsi- 
bilities in Guam, the Trust Territory, and in logistical support for 
United States activities in Antarctica which are organized principally 
through the National Science Foundation. Programs of general 
applicability to both States and territories are almost exclusively 
administered by the agency with the overall program responsibility. 

The committee's analysis is therefore broken out by territory and 
summarized within general program function and subfunction codes. 

The President's fiscal year 1979 budget request for administration 
of the territorial responsibilities of the United States proposes a 
budget authority of $157.5 million with a budget outlay of $143.9 
million. The committee recommends increases of $205 million and 
$145 million respectively. Committee recommendations by program 
are as follows: 

Guam Rehabilita t ion 

The President's budget submission requests $500,000 in budget 
authority and outlays pursuant to Public Law 90-601, the Guam 
Development Fund Act of 1968. The obligation of the $500,000 
would exhaust the total authorization under Public Law 90-601. 
The committee has indicated an increase of $1 million in budget 
authority for the Guam economic development loan fund from the 
authorization contained in Public Law 95-134. Actual outlays for 
fiscal year 1979 cannot be estimated until the formal requests from 
the government of Guam are sent to the Secretary of the Interior, 
but the Committee believes that the budget authority should be 
provided to cover whatever needs may arise. 

Guam ( 'onstruction 

The committee has recommended budgetary authority of $15 
million with outlays of $8 million for fiscal year 1979 pursuant to 
section 201(a) of Public Law 95-134. The committee notes that there 
is a possibility that the administration may request the $15 million in 
budgetary authority as a fiscal year 1978 supplemental. The com- 



59 

mittee would support this action, but has included the $15 million 
in fiscal year 1979 due to the uncertainty of Appropriations Committee 
action on a supplemental. The $15 million authorized by section 201(a) 
of Public Law 95-143 would assist in typhoon rehabilitation, up- 
grading and construction of public facilities, and maintenance of 
essential services. 

Guam Health Care 

The President's budget request does not contain funds for Guam 
Health Care. The committee recommends a level of $35 million in 
budgetary authority and outlays for fiscal year 1979 for a grant to 
Guam for health care assistance. The committee understands that it is 
possible that a request may be made for authority in an fiscal year 1978 
supplemental and would support such a request. Section 205 of Public 
Law 95-134 authorized $25 million for such a grant. The $25 million 
represented the best estimate of the costs of purchase of the Medical 
Center of the Marianas by the Government of Guam to provide acute 
care treatment in lieu of rehabilitating the Guam Memorial Hospital 
which was severely damaged by a typhoon. The additional $10 million 
included in the committee's fiscal year 1979 recommendation is to 
cover the additional costs incurred by a delay until fiscal year 1979 
in making these funds available. 

American Samoa 

For fiscal year 1979, the President's budget request contained 
$19.9 million in budget authority for American Samoa. The com- 
mittee recommends an increase of $3 million in budgetary authority. 

The increase is principally to provide for an economic development 
loan fund to encourage the development of small business, construc- 
tion, and other skills necessary to minimize the present heavy im- 
portation of alien labor into Samoa. The committee notes that the 
decrease in budgetary authority recommended by the President is 
principally in construction and capital improvement projects. It may 
be necessary to increase these levels and the $3 million recommended 
increase should be sufficient to cover any need, deferring reaching 
the full $3 million economic development fund level until fiscal year 
1980. No new authorization is needed for the $3 million increase for 
either construction or for a loan fund. Sufficient authority exists under 
48 U.S.C. 1661; 46 Stat. 4 (Ex. Ord. Xo. 10264, June" 29, 1951, 16 
F.R. 6419). 

Virgin Islands Taj- Loss 

The President's budget request does not contain funds for this 
item. The committee recommends a level of $14 million in budgetary 
authority and outla}^ for fiscal year 1979 to exhaust the authorization 
contained in section 402 of Public Law 95-134 to reimburse the govern- 
ment of the Virgin Islands for revenue losses occassioned by the Tax 
Reform Act and the Tax Reduction Act. The Virgin Islands, by federal 
law, must use the federal internal revenue laws as a local territorial 
tax. The Congress failed to consider the impact on an otherwise bal- 
anced budget of major tax reductions in 1975 and 1976. The com- 
mittee understands that the Virgin Islands has requested that the 
funds be made available in an fiscal year 1978 supplemental and the 
Committee would support such a request. The committee has in- 



60 

eluded the $14 million in fiscal year 1979 due to the uncertainty of 
Appropriations Committee's actions and the lack of response to date 
from the Office of Management and Budget on the request from the 
Virgin Islands for a supplemental request from the administration. 

Virgin Islands Revenue Shortfall 

The President's fiscal year 1979 budget request does not contain 
funds for this item. The committee recommends $30 million in new- 
budgetary authority as a precaution against a budget deficit in the 
Virgin Islands. In the past, the Virgin Islands has, as requested by 
Federal law, maintained a balanced budget or a surplus. Recently, 
however, changes in the Federal internal revenue Laws which are 
mirrored in the Virgin Island- have been compounded by the effects 
of mainland recession on the Virgin Islands economy to create a 
potential deficit. If in fact the Virgin Islands does not derive sufficient 
revenues, it will be necessary for either the Federal Government to 
provide a grant or for the Virgin Islands to curtail service- such as 
education, or health programs. The committee notes that it i.^ possible 
that a resolution of the petroleum product excise question may either 
eliminate this problem or require legislation to reimburse the Virgin 
Islands for revenues mistakenly withheld in prior years. 

Virgin Islands Hospital 

The President's fiscal year 1979 budget request does not contain 
funds for this item. The committee recommends new budgetary 
authority of S52 million with outlays of $15 million for fiscal year 1979 
for hospital construction in the Virgin Islands. The committee antici- 
pates that completion of health needs studies will result in a request 
for authority to construct hospital facilities on St. Thomas and St. 
Croix with a -mailer facility on St. John-. No authorization exists at 
the present time pending study review and recommendation by the 
Governor. 

( 1 ompt roller's Office 

The President's aggregate fiscal year 1979 budget authority request 
for the Comptroller's Ofi < 2.7 million. The committee recommends 

an increase of $500,000 or $100,000 for each of Guam, the Trust Terri- 
tory and Northern Marianas, American Samoa, and the Virgin Islands, 
in order to permit the respective ( Comptroller's offices to offer tech- 
nical assistance to the territorial governments. This assistance is 
needed if the territorial governments are to implement the various 
recommendations for improvement cited by the Comptroller's offices, 
the Office of Territorial Affairs, and this committee. 

Office of Territorial Alio 

The President has requested $1.03 million in budget authority for 
the Office of Territorial Affair-. The committee recommends an ad- 
ditional $100,000 to rover the costs of technical assistance needed by 
the territories. The committee notes thai the Administration recom- 
mendation Includes the increase of personnel by seven permanent 
positions within the present ceiling, and supports that action. 

Northern Mariana lslai 

The President's fiscal year 1979 budget request includes $18 million 
in budget authority for the Northern Mariana [slands. The commit tee 



Gl 

recommends an increase in budgetary authority of $1 million to cover 
present uncertainty over the indexing formula included in the Com- 
monwealth Covenant. The Administration levels reflect its judgment 
as to the period of indexing calculations while the committee recom- 
mendation reflects appropriate levels should the Administration be 
in error. The committee recommendation does not reflect nor imply 
any judgment as to the proper date for indexing but is designed only 
to guarantee sufficient flexibility in budget resolutions should the 
Administration be in error. 

In addition, the committee recommends $290,000 in budgetary 
authority with $180,000 in outlays for fiscal year 1979 to fund the 
joint Commission on the Review of the Applicability for Federal 
Laws to the Northern Mariana Islands for which the President had 
not requested funds. The Commission was authorized by the Cov- 
enant to establish a Commonwealth of the Northern Mariana Islands, 
section 504, Public Law 94-241. The committee anticipates that the 
Commission will take approximately 18 months to complete its work 
with fiscal year 1980 outlays of approximately $110,000. 

Territories 

The President's fiscal year 1979 budget request for the Trust Ter- 
ritory is $106.92 million. The committee recommends an increase of 
$43 million. Of the President's request, approximately $51.7 million 
is for capital improvements, an increase of $17,688 million over fiscal 
year 1979. The increase, however, is still $18.6 million short of the 
amount needed to maintain the capital improvement program as 
designed by the Navy Officer in Charge of Construction and approved 
by the Congress of Micronesia and the Administration and as author- 
ized by the Congress in Public Law 95-143 section 101(a). The in- 
crease recommended by the Administration is somewhat specious in 
that it represents only a return to program levels and does not include 
the projects deferred due to the decreases requested in fiscal }-ear 1978. 
Adoption of the Administration's recommendation will result in 
(1) significantly higher costs when projects are initiated in future 
years due to the deferral, (a) permanent deferral of the projects which 
would result in failure of the United States to have a basic infra- 
structure in place by the termination of the Trusteeship anticipated 
in 1981, or (3) a return to piecemeal, multi-stage contracts criticized 
by this committee, the Congress of Micronesia and the Administra- 
tion prior to the development of the 5-year program to be adminis- 
tered by the Navy OICC. 

The committee, accordingly, recommends the following projects 
be re-included in the fiscal year 1979 levels. 

MiUion* 

Marshalls (docks) $969,000 

Ponape (roads) 3,010,000 

Yap (roads) 2,839,000 

Truk (roads) 3,573,000 

Marshalls (water) 839,000 

Truk (water) 3,573,000 

Yap (power 1,221,000 

Marshalls (power) 1,142,000 

Truk (sewer) 834,000 

Total 18,000,000 

24-427 — 7S 6 



62 

In addition the committee recommends $10 million to fund airport 
construction in Ponape and Truk. This $10 million will not derive 
from the general authorization level of $122,700,000 for fiscal year 
1979 included in section 101(a) of Public Law 95-143 but from the 
authorizations to cover any decrease in Federal grant-in-aid programs 
as these airports would have been funded by FAA but for the reduc- 
tion in FAA fund availability. 

The committee also includes approximately $10 million in budgetary 
authority with $8 million in outlays for construction programs at 
Ebeye Island on the Kwajelein Atoll, Marshalls District. The com- 
mittee notes that the reauthorization of authorized but unappropriated 
sums contained in section 101(a) of Public Law 95-143 would be 
sufficient to cover this increase without affecting the specific program 
level included for fiscal year 1979. The situation at Ebeye has been of 
great concern to the committee for several years and the committee 
anticipates administration support for this level. 

The committee notes that the $10 million recommended increase 
for airports at Ponape and Truk may be transmitted as an fiscal 
year 1978 supplemental request, and the committee would support 
such a request. The committee included the $10 million in fiscal 
year 1979, however, due to the uncertainty of clearance from OMB 
for an fiscal year 1978 supplemental request and the uncertainty of 
action on such a request by the Appropriations Committees. 

Eniwetak Rehab il itation 

The President's budget request for fiscal year 1979 does not request 
budget authority but does project a budget outlay of $5.4 million for 
this program. The committee supports the administration's estimate 
on outlays but recommends an additional $1.5 million in budgetary 
authority and outlays pursuant to section 103 of Public Law 95-143. 
That section contains a construction inflation formula and the com- 
mittee believes it will probably be necessary to complete the rehabili- 
tation to enable the Enewetakese to return to their atoll. 

Rongelap-Utirik Compensation 

The President did not request budgetary authority for fiscal year 
1979 for compensation of inhabitants of Kongelap and Utirik who 
were exposed to radioactive fallout during the Bikini tests. Based on 
the hearing record on Public Law 95-143 and the material submitted 
to the committee, the committee recommends budgetary authority 
and probable outlays of $200,000 to cover five new cases in fiscal year 
1979. 

Rongelap-Utirik-Bikini Community Projects 

Section 104(b) of Public Law 95-143 authorized $100,000 each to 
the communities of Kongelap, Utirik, and Bikini for construction and 
repair of community facilities. The President's budget request for fiscal 
year 1979 does not contain funds for this program. The funds are 
unquestionably needed and accordingly the committee recommends 
them in fiscal year 1979. 

War Claims 

Section 105 of Public Law 95-134 authorized the payment of an 
additional $12.4 million under title II of Public Law 92-39, the 
Micronesian Claims Act of 1971 and approximately $23.6 million under 



G3 

title I of that act if the Japanese Government contributes not less 
than 50 percent. Payment of the claims is conditioned on a finding by 
the Secretary that no unauthorized interest was included in the 
awards. The President's budget request for fiscal year 1979 does not 
request funds for this program; however, the committee believes that 
in the interests of justice and equity mandate the inclusion of $12.4 
million in case the Secretary should determine that some or all of these 
moneys are due claimants. 

Guam-Munitions Pier 

The President's budget request for fiscal year 1979 for military 
construction by the Navy Department does not include funds for 
relocation of the munitions pier on Guam. Original plans had called 
for relocation of the facility from the present harbor area where there 
is danger to persons and property to Cella Bay. The proposal was 
subsequently revised to relocate the facility to Erodi Beach. The 
committee recommends inclusion of $43 million in budget authority 
and $30 million in budget outlay for fiscal year 1979 in order to 
relocate the pier. 

11. U.S. GEOLOGICAL SURVEY 

For fiscal year 1978, the Congress appropriated $362 million for the 
programs of the U.S. Geological Survey to undertake surveys, in- 
vestigations, and research covering topography, geolog} r , and the 
mineral and water resources of the United States and other areas 
authorized by law. The President's request for fiscal year 1979 is $398 
million, an increase of $36 million which allows for maintenance of the 
existing program at current levels in constant dollars. Both amounts 
do not reflect funds appropriated or requested for exploration of the 
National Petroleum Reserve in Alaska which is considered separately 
in this report. As discussed herein, the committee recommends an 
increase of $3,100,000 in the noted programs of the U.S. Geological 
Survey. 

Mineral Information Systems 

The committee is concerned that the President's budget request 
does not reflect the need for increased activity in the U.S. Geological 
Survey's program for mineral information s}'stems and resource 
analysis which is shared with the Bureau of Mines. Information 
storage within the Computerized Resources Information Bank 
(CRIB) system of the U.S. Geological Survey provides the general 
mineral resource data upon which much of the mineral reserves 
information contained in the Bureau's Mineral Availability System 
(MAS) is based. 

The committee believes that the CRIB-MAS program has failed to 
live up to its potential. According to a GAO study, both systems suffer 
from a basic lack of administration recognition in their importance and 
usefulness. The committee believes that the U.S. Geological Survey 
and the Bureau should coordinate the programs so as to assure ready 
access to data for the general public and for departmental decision- 
makers. 

Therefore, the committee recommends an increase of $450,000 and 
eight positions for the U.S. Geological Survey functions associated 
with the mineral information system and resources analysis budget 
for CRIB-MAS coordination. 



64 

Law of the Sea Conference 

Ocean mining legislation supported by the administration is now 
pending in the Senate and in the opinion of the committee is likely to 
be enacted by Congress in this session. With the renewal of negotia- 
tions of the United Nations Law of the Sea Conference in Geneva, it 
is important that the Department of the Interior be prepared to 
assume regulatory responsibility in the near future. Interpreted data 
could and should be collected and used b}^ the Department in the 
formulation of regulations for mining in the deep oceans. 

Assuming the enactment of appropriate legislation, ocean mining 
is imminent. Industry spokesmen expect production of manganese, 
nickel, copper and cobalt from manganese nodules located in one or 
two high grade areas by 1985. Presently within the Geological Survey 
there are marine research projects which can serve as the nucleus of a 
Federal manganese nodule program. Seed projects on processes of 
seafloor mineral formation, chemical analysis of nodules, deep seabed 
mapping and worldwide manganese resources surveys are among the 
existing programs. 

Under the ocean mineral policy established by the Secretary, the 
Geological Survey and Bureau of Mines would undertake the follow- 
ing additional programs: 

— resource assessment to define, locate and evaluate the magni- 
tude of manganese nodule resources; 
— compilation and evaluation of available data; 
— surveying, sampling, and mapping of potential mine-site areas 
to establish criteria required to define a deep sea mine. Data 
are required to delineate acceptable mine-site dimensions, 
considering the erratic nodule distribution, size and concentra- 
tion, variations in metal concentrations and topographic 
features that may pose hazards to mining equipment. 
The committee recommends an additional $2,650,000 be appro- 
priated for fiscal year 1979 and 14 positions be established to fund 
these programs to undertake preparatory work in anticipation of 
passage of related legislation. 

12. SUMMARY 

For the programs of the Department of the Interior, the President's 
proposed budget for fiscal year 1979 is summarized in the following 
table, along with the recommendations of the Committee on Energy 
and Natural Resources. 



Go 



DEPARTMENT OF THE INTERIOR 



Advisory Council on Historic Preservation: 

Budget authority 

Budget outlays 

Bureau of Land Management: 

Budget authority 

Budget outlays 

Bureau of Mines: 

Budget authority 

Budget outlays 

Bureau of Reclamation: 

Budget authority... 

Budget outlays 

Heritage Conservation and Recreation Service: 

Budget authority 

Budget outlays 

National Park Service: 

Budget authority 

Budget outlays..- 

National Petroleum Reserve in Alaska: 

Budget authority 

Budget outlays 

Office of Surface Mining Reclamation and Enforcement: 

Budget a uthor ity 

Budget outlays 

Pennsylvania Avenue Development Corporation: 

Budget authority 

Budget outlays 

Territories: 

Budget authority 

Budget outlays 

U.S. Geological Survey: 

Budget authority 

Budget outlays 



President's 

request, 

fiscal year 

1979 


Committee 
recommenda- 
tion, 1979 


Committee 

increase 

(decrease) 


1,553 
1,481 


2,000 
1,881 


447 
400 


485,925 
483, 780 


576, 791 
564, 052 


90, 867 
80, 272 


121,329 
127,975 


123, 229 
128, 975 


1,900 
1,000 


622, 400 
604, 540 


733, 400 
704, 540 


111,000 
100, 000 


790, 987 
614,852 


1,336,478 
1,145,352 


545, 500 
530, 500 


504, 586 
484, 891 


696, 586 
634, 891 


192,000 
150,000 


186, 000 
187, 150 


252, 452 
237, 150 


66, 452 
50, 000 


108,620 
6S, 870 


117,120 
75, 870 


8,500 
6,000 


27, 235 

34,085 


34, 450 
39, 085 


7,215 
5,000 


157,500 
143,900 


362, 500 
288, 900 


205, 000 
145, 000 


398, 363 
393, 838 


401,463 
395, 838 


3,100 
2,000 



C. Department of Agriculture 

1. U.S. FOREST SERVICE 

Unique among Federal land management agencies, the Forest 
Service is required by law to periodically provide the Congress with 
a specific long range program setting forth proposed land management 
goals for each of the renewable resources and the financial require- 
ments to meet those goals. The first such program, submitted pursuant 
to the Forest and Rangeland Renewable Resources Planning Act of 
1974 (RPA), covered the period from 1977 to 2020. In addition, a 
number of specific land management goals were established by the 
Congress in the National Forest Management Act of 1976 (NFMA). 
The proposed fiscal year 1978 budget of Presidents Ford and Carter of 
$1,011,741,000 for the Forest Service failed to accommodate either 
the funding authorizations in, and requirements of, the NFMA or the 
projected RPA's program goals for fiscal year 1978. 

The Appropriations Committees made significant additions to the 
proposed fiscal } r ear 1978 budget with the goal of reaching 85 percent 
of RPA goals. The final fiscal year 1978 appropriation of $1,476,- 
860,000 met 84.5 percent of RPA goals. 

The Committee is disturbed that the President's fiscal year 1979 
proposal of $1,574,420,000 recedes further from the RPA goals. This 
year the proposed budget includes all the funds for "forest fire pro- 
tection" and "fighting forest fires" which in the past, have been 
submitted for supplemental appropriations. When the $152,399,000 
total increase over fiscal year 1978 in the two — forest fire protection 
and fighting forest fires — budget items is deleted, the President's 
proposal is reduced to $1,422,021,000 or $54,839,000 less than the 
appropriation level of fiscal year 1978. The President's fiscal year 1979 
proposal would meet only 71.6 percent of RPA goals. 

The committee firmly believes that the target for fiscal year 1979 
should once again be 85 percent of RPA goals. However, as the 
Committee does not comment on all Forest Service programs, the 
increase it proposes will not permit the agency to reach the 85 percent 
goal for the entire range of its activities. This will depend on the 
recommendations made for the other budget items b} r the Committee 
on Agriculture, Nutrition, and Forestry. 

The committee recommends an increase in the Forest Service fiscal 
year 1979 budget of $155,273,000. 

Forest Protection and Utilization; Forest Land Management 

The most critical budgetary needs of the Forest Service are found 
in the Forest Protection and Utilization appropriation. Congress 
placed heavy emphasis on this category with the passage of the NFMA. 
The committee (by virtue of its general jurisdiction and its specific 
joint responsibility for the NFMA with the Agriculture, Nutrution, 
and Forestry Committee) is particularly concerned with the Forest 

(66) 



67 

Land Management subcategory. The committee expects the other 
subcategories — Forest Research and State and Private Forestry 
Cooperation — to be addressed by the Agriculture Committee. The 
Committee recommends a $122,273,000 increase in the President's 
proposed fiscal year 1979 budget of $689,624,000 for the Forest Land 
Management appropriation. 

National Forest Protection and Management 

This $600,773,000 subactivity is the largest in the Forest Service's 
fiscal year 1979 budget, but, when the reduction is made for inclusion 
of the additional "forest fire protection" funds normally absent from 
the agency's fiscal year budget requests and submitted only for supple- 
mental appropriations, the President's net proposal of $508,434,000 
is $12,753,000 less than the fiscal year 1978 appropriation level. The 
President's proposal for this subactivity would meet 81 percent of 
RPA goals; only three items (sales administration and management, 
85 percent; forest fire protection, 100 percent; and, general land 
management activities, 81 percent) approach or exceed the 85 percent 
of RPA goals target. The Committee recommends the addition of 
$122,215,000 to the President's fiscal year 1979 budget request for 
this subactivity. 

Sales Preparation. — The Administration proposes to meet the in- 
creased need for National Forest timber in fiscal year 1978 by offering 
for sale 12.2 billion board feet. This offering would be achieved by 
several "one shot" actions, including (a) adding the cany over volume 
from fiscal } T ear 1977, (b) exhausting the remaining viable "on-the- 
shelf" timber and (c) including the mortality timber to be recovered 
through salvage sale fund procedures. In 1979 the sale offering would 
be reduced to 11.5 billion board feet. The committee objects to this 
proposed reduction in sale offering and recommends a budget increase 
of $10,000,000 and 450 man years of effort to elevate the 1979 goal to 
that which will be achieved in 1978. 

Reforestation and Stand Improvements. — This particular program has 
been a focus of Congressional attention culminating in specific pro- 
visions in both the RPA and NFMA which address both the serious 
backlog, and current work, in reforestation. A total of $66,475,000 is 
requested in fiscal year 1979 for this item. This is only $1,248,000 
more than was requested in fiscal year 1978 and is $8,914,000 less than 
the fiscal year 1978 appropriation level. It would reduce the acreage 
reforested from 206,000 to 151,000, and the acreage on which timber 
stand improvement work is done from 287,000 to 169,000, from 
fiscal year 1978 to fiscal year 1979. This request would provide only 
50 percent of RPA reforestation and timber stand improvement goals. 
Tho funds specifically allocated for reforestation are only 18 percent 
of the fiscal year 1979 $200,000,000 authorizatk n for that purpose in 
section 4 of the NFMA. 

The committee is deeply concerned about the failure of the Admin- 
istration to support a reforestation program which has been afforded 
such a high priority by the Congress. The committee recommends a 
$48,888,000 increase over the President's fiscal year 1979 request, 
divided as follows: $14,863,000 for reforestation (covering 247,000 
acres instead of 151,000); $26,934,000 for timber stand improvement 
affecting (370,000 acres instead of 169,000), and $7,091,000 for genetic 



68 

tree improvement. This increase will allow the Forest Service to 
continue on the fourth year of its 10-year reforestation schedule 
prepared pursuant to the direction of the Appropriation Committees 
in 1975. These additions also will provide the agency with the increased 
capacity in future fiscal years to meet the goal of elimination of the 
reforestation backlog by 1985 set forth in section 4 of the NFMA. 

Recreation Use. — The budget proposal for recreation is $88,277,000, 
down $813,000 from the fiscal year 1978 appropriation level. This 
request would meet only 72 percent of the RPA 1979 goals. This 
figure may not even meet the recreation portion of the multiple use 
land management planning required by the NFMA and the funding 
needed to conduct several specific wilderness and national recreation 
area planning exercises required by individual statutes. The Committee 
recommends an increase over the budget request of $17,370,000 for 
this item. This would permit the agency to accommodate 3 million 
more visitor da} r s for a total 316 million such days. The increase would 
be divided as follows: $1,250,000 in administration of concessions and 
recreation permits; $7,855,000 in operations and maintenance; $4,559,- 
000 in planning and inventories; $1,358,000 in wilderness administra- 
tion; and $2,348,000 in the Visitor Information Service. 

Wildlife and Fish Habitat Management. — The proposed $25,276,000 
budget for wildlife and fish habitat management is seriously inadequate 
It is a reduction of $2,576,000 from the fiscal year 1978 appropriation 
level (down from 1,124,000 to 925,000 the acre equivalents covered by 
habitat restoration and development work) and would meet only 54 
percent of the RPA goals. 

Failure to properly fund wildlife and fish habitat management 
activities is particularly unfortunate because, under the Sikes Act, 
much of the planning has already been accomplished and, thus, the 
funds could be applied to actual "dirt-work" instead of "paper- 
shuffling." Furthermore personnel ceilings are not a significant 
constraint in comparison to other program activities because much of 
the habitat improvement work under the Sikes Act cooperative agree- 
ments is conducted by the States or under contract. 

Accordingly, the committee recommends an increase of $15,161,000 
in this budget item, divided as follows: $14,365,000 in habitat resto- 
ration and development (increasing the coverage from 925,000 acre 
equivalents to 2,054,000 acre equivalents); $466,000 in endangered 
and threatened species habitat protection (increasing the acre equiva- 
lents from 32,000 to 34,000); and $330,000 in coordination and 
cooperation. 

Rangeland Management. — The rangeland management item is the 
most deficient budget item in the Forest Protection and Utilization 
category and, perhaps, the most deficient budget item in the agency's 
entire fiscal year 1979 budget from the standpoint of committee pri- 
orities. The committee has made its position clear on the need for the 
placing of heavy emphasis on rangeland management, rehabilitation, 
and improvement work. Yet, the President's request of $24,914,000 
for rangeland management is reduced by $6,321,000 from the fiscal 
vcar 1978 appropriation level and would meet only 45 percent of the 
RPA goal. The 1978 Budget Explanatory Notes of the Forest Service 
contain the comment that the proposed increase in the fee for grazing 
livestock on national forest land will add $1,174,000 to the Rangelands 



69 

Improvement Account and partially offset the decrease in the range- 
land management item. As the House has already passed, and the 
committee will soon take up H.R. 9757, a bill to impose a moratorium 
on the grazing fee increase, these additional funds will not likely be 
forthcoming. (See Legislative Action item 6.) 

The committee recommends an increase of $13,618,000 in the range 
mangement item over the President's fiscal year 1979 request. $1,174,- 
000 of this increase will substitute for the $1,174,000 expected in the 
Range Improvement account but which will be denied to the agency 
upon passage of the grazing moratorium bill. The remaining $12,444,- 
000 will be used to increase the Animal Unit Months from 7,900,000 
expected under the fiscal year 1979 request to 8,100,000 and to decrease 
the backlog of depleted range rehabilitation work by 410,000 acres 
instead of 396,000 acres as contemplated in the fiscal year 1979 request. 

Soil and Water Management. — There is a serious backlog of water- 
shed restoration work on the national forests. Many areas require the 
application of treatment measures involving large capital investments 
to restore soil and site productivity or to protect water quality. Other 
areas, because of their naturally low herbage productivity potential, 
will gradually be removed from grazing allotments as range improve- 
ment practices increase the livestock carrying capacity of more pro- 
ductive areas. A major portion of the soil stability problems on these 
areas can be corrected over time through management practices if 
sufficient funding is available. The western drought has highlighted 
the need for such funding. 

Unfortunately, the 834,229,000 fiscal year 1979 request for soil and 
water management will not provide this funding. The request is 
identical to the fiscal year 1978 appropriation level, but, whereas this 
funding was 88 percent of RPA goals in fiscal year 1978, it would be 
only 59 percent in fiscal year 1979. 

The committee recommends an increase of $14,171,000, divided as 
follows: $2,223,000 for inventories ("Soil and Water Science for 
Management Support", covering 38,000,000 acres instead of the 
33,600,000 acres contemplated in the fiscal year 1979 request); and 
$11,948,000 for improvements ("Soil and Water Resource Improve- 
ment", affecting 97,000 acres instead of 73,000). These increases will 
permit the agency to meet XFMA multiple-use land management 
planning requirements and help accomplish initial watershed treat- 
ment on additional acreage which requires early attention in order to 
prevent further rapid deterioration and avoid a much higher ultimate 
restoration cost. 

Mineral Areas Management.— The $11,319,000 fiscal year 1979 re- 
quest for mineral areas management is down $180,000 from the fiscal 
year 1978 appropriation level. The request would meet 71 percent of 
RPA goals. The committee recommends an increase of $3,007,000 to 
permit the agency to reduce the backlog of mineral cases (2,000 cases, 
40,000 acres in mineral claims, 4,500 cases, 8,630,000 acres in energy 
minerals; and 200 cases, 3,000, acres in common variety minerals) and 
meet the minerals portion of the XFMA multiple-use planning re- 
quirements. The committee-recommended increase would be divided 
as follows: $1,074,000 in mineral claims, $1,550,000 in energy min- 
erals, and $383,000 in common varieties. 



70 

Forest Insect and Disease Management 
The committee certainly agrees with the statement in the Forest 
Service Explanatory Notes on the fiscal year 1979 budget proposal 
that "damage to the forest resources continues to be on the increase, 
particularly damage by bark beetles and defoliators." The damage 
to a significant national resource robs the country of critically needed 
employment opportunities and the Federal and State treasury of 
timber receipts. In recent years, individual Committee members have 
voiced concern to the Forest Service about the modest level of expendi- 
tures for bark beetles and defoliator suppression. However, the 
$18,633,000 in the President's fiscal year 1979 proposal does not re- 
flect an adequate response to the concern expressed. This request, 
$6,656,000 less than the fiscal year 1978 appropriation level, drops 
this item from 87 percent of RPA goals in fiscal year 1978 to 62 percent 
in fiscal year 1979. The amount proposed in the President's budget 
would continue the focus on data collection and pilot projects rather 
than on a full-scale suppression effort. The committee recommends an 
increase of $10,058,000 which would meet 90.7 percent of fiscal year 
1979 EPA projected expenditures. 

Construction and Land Acquisition 

There exists a large accumulation, estimated to be well over $200 
million, of recreation construction and reconstruction needs on the 
national forests. While it will take several years to reduce such a 
backlog, the committee feels that the Forest Service could effectively 
use an additional $23 million in fiscal year 1979 for construction of the 
most critically needed new recreation facilities ($12 million) and for 
provision of deferred maintenance to, and rehabilitation of, worn out 
or dilapidated existing facilities to halt the continued deterioration 
of recreation facilities which have not already been closed as a result of 
budget constraints ($11 million). Projects would include: 

(1) Replacement of facilities that are worn out and uneconom- 
ical to operate; 

(2) Upgrading of recreation facilities, particularly water and 
sanitation systems, to meet recently established standards; 

(3) Completion of facilities at reservoir projects, e.g., roads, 
parking, and picnic facilities which are already in place; and 

(4) Provision of recreation facilities at reservoirs constructed by 
public bodies for recreation and other purposes. 

The committee believes this budget addition should be particularly 
welcome because of the prospects for employment it affords. 

This large increase is made necessary by the sizeable reduction below 
the already inadequate fiscal year 1978 appropriation level made by 
the fiscal year 1979 request. Of the $21,767,000 reduction in the entire 
Construction and Land Acquisition appropriation (from $41,093,000 
in fiscal year 1978 to $19,545,000 in fiscal year 1979), $7,386,000 is in 
the virtually halved recreation construction subcategory (from $15,- 
208,000 in fiscal year 1978 to $7,822,000 in fiscal year 1979). The per- 
cent of RPA goal for the whole category drops from 77 percent to 
22 percent, but in the subcategory it declines from 69 percent to 19 
percent. The committee's recommended increase would permit the 
recreation construction category to reach 75 percent of the RPA 
fiscal year 1979 projected expenditures. 



i 1 

U.S. FOREST SERVICE 



Amount Ceilings 

(thousands) (FTP) 



Forest Land Management: 

Sales preparation 

Reforestation and stand improvement 

Recreation use 

Wildlife and fish habitat management 

Rangeland management 

Soil and water management 

Minerals area management 

Forest insect and disease management 

Construction and land acquisition 

Total, ForestService 155, 273 2, 557 



10, 000 


450 


48, 888 


573 


17, 370 


266 


15, 161 


284 


13,618 


292 


14,171 


269 


3, 007 


67 


10,058 


136 


23, 000 


220 



D. Other 

1. NATIONAL SCIENCE FOUNDATION POLAR PROGRAMS 

Polar Programs 

The U.S. Antarctic research program subactivity supports a multi- 
disciplinary research program on the Antarctic continent and in the 
adjacent oceans. The research is focused to increase scientific knowl- 
edge through environmental and resource related programs. The re- 
search is conducted at four antarctic stations, from remote temporary 
field sites, and aboard two research ships. Remote sensing techniques, 
using satellites, aircraft, rockets, balloons, and unmanned stations, are 
utilized in the conduct of the research. Cooperative research programs 
with scientists of other nations are commonplace. 

The operations support program subactivity provides for the direct 
support of science activities and the maintenance of an effective U.S. 
presence in Antarctica. 

The National Science Foundation is designated as the single source 
of funding and management for the U.S. Antarctic program. The 
Department of Defense and the Department of Transportation provide 
operational support on a cost reimbursable basis. The Foundation also 
contracts for support services when it is cost effective. 

The committee agrees with the proposed budget authority for the 
National Science Foundation for both the Antarctic research program 
and those functions of their general research which relate to Arctic 
programs. The committee wishes to emphasize that over 80 percent of 
the Antarctic research program are funds to reimburse the Navy for 
logistical support. These costs are fixed, leaving only $6,542,000 for 
research out of the budget request of $50,700,000. The committee 
believes that no reduction could be made in this account without 
seriously jeopardizing this entire program. The committee notes that 
a small increase in the logistics function would allow the U.S. Navy 
to operate two additional aircraft which are available. 

(72) 



III. LEGISLATIVE ACTION ITEMS 

The following discussion reviews those measures within the juris- 
diction of the Senate Committee on Energy and Natural Resources 
which are expected to be enacted during the second session of the 
96th Congress and would have major significance for the fiscal year 
1979 budget. 

The committee also will be considering a number of measures 
which have less significant budgetary impacts. While these measures 
are not likery to be of consequence to the Budget Committee, their 
exclusion from this report does not imply any attitude that funding 
would be postponed beyond fiscal year 1978 for successful measures. 
The budget resolution, in addition to the measures shown, should 
anticipate minor new legislative initiatives, which cannot now be 
anticipated, in the functional areas of natural resources, parks and 
recreation, territorial affairs, and energy. 

A. Energy 

There are numerous legislative initiatives before the 95th Congress, 
either as part of the Department of Energy fiscal year 1979 author- 
ization bill or as separate legislation. Some of these may have potent- 
ially significant fiscal year 1979 budgetary impact, while others would 
have their primary impact in later years. A detailed discussion of bills 
which are expected to be enacted during this session and which would 
have fiscal year 1979 budgetan~ implications for the Energ}^ function 
follows : 

NATIONAL ENERGY PLAN LEGISLATION PENDING IN CONFERENCE 

The National Energy Plan proposed by the President on April 20, 
1977 was represented legislatively in the Senate by, five bills, all of 
which passed during the first session of the 95th Congress. These bills 
are now pending in conference in various stages of development. 
However, the fiscal year 1979 budgetary implications of the bills which 
are under the jurisdiction of the Committee on Energy and National 
Resources can be estimated with accuracy at this time, since the 
authorization levels specified in these bills have been agreed to by the 
conferees. Accordingly, the budget ceiling estimates recommended by 
the Committee in this report have been adjusted to take these authori- 
zations into account. 

Energy Conservation 

The energy conservation bill (H.R. 5037) provides the largest 
fiscal year 1979 budget impact of the bills under the committee's 
jurisdiction. This legislation authorizes energy conservation grant, 
procurement and regulatory programs totaling $955 million in authori- 
zations which could apply in fiscal year 1979. In addition programs 
are authorized for the purchase by the Government National Mortgage 

(73) 



74 

Association (Ginny-Mae) of $5 billion in energy conservation loans 
and $100 million in federally subsidized loans for solar energy equip- 
ment. 

Included in the grant programs are $200 million for weatherization 
of dwellings occupied by low-income persons, $300 million for improv- 
in the thermal efficiency of public schools and hospitals, $100 million 
to State governments and $40 million to local governments and public 
care institutions for technical assistance and energy audits. Federal 
expenditures of $50 million to implement a 10-year energy conservation 
program for Federal buildings, $100 million for the demonstration of 
solar heating and cooling in Federal buildings and $98 million for 
purchase of photovoltaic devices are also authorized in H.R. 5037, 
although it is contemplated that the authorizations for the last two 
programs will be spread over three fiscal years. 

Public Utility Rate Reform 

The public utility rate reform bill (H.R. 4018) also has significant 
budgetary impact for fiscal year 1979. Grants and technical assistance 
relating to rate reform total $61 million. Also authorized are loan 
programs for feasibility studies ($10 million) and actual construction 
($100 million) of low-head hydroelectric projects in existing dams. 

Coal Conversion 

The coal conversion bill (H.R. 5146) would require certain new 
electric powerplants and major fuel-burning installations and certain 
existing installations to utilize alternative fuels to natural gas or 
petroleum. An authorization of $15.7 million is provided for this 
program in fiscal year 1979. Loan guarantees for existing electric pow- 
erplants to acquire necessary air pollution control equipment to use 
coal are authorized for fiscal year 1979 in the aggregate amount of 
$400 million. In addition, several special studies are authorized: a 
one-year Presidential National Coal Policy Study ($18 million); a 
two-year Presidential study of coal industry performance and com- 
petition study ($18 million) ; a Federal-State task force on Federal 
initiatives on impact assistance; a two-year study of the compliance 
problems experienced by small electric utility systems ($500,000) ; and 
an EPA study of the emissions from new and existing electric power- 
plants and major fuel-burning installations which are required to use 
coal or other fuel by this Act ($2,000,000). The Secretary also is di- 
rected to conduct an evaluation of potential losses of employment 
which may result from the application of this Act. 

Natural Gas 

The remaining bill under the Committee's jurisdiction, H.R. 5289, 
relating to natural gas pricing, contain no provision with significant 
new fiscal year 1979 authorizations. 

S. 2692, DEPARTMENT OF ENERGY CIVILIAN PROGRAM AUTHORIZATION 
ACT FOR FISCAL YEAR 1979 

A bill (by request) to authorize the civilian programs of the Depart- 
ment of Energy for fiscal year 1979 and for other purposes. The budg- 
etary impact of this measure is indicated in the discussion of the 
President's budget. 



S. 2693 (TITLE II) DEPARTMENT OF ENERGY NATIONAL SECURITY AND 
MILITARY APPLICATIONS OF NUCLEAR ENERGY AUTHORIZATION ACT OF 
1979 

A bill (by request) to authorize appropriations for the Department 
of Energ}^ for national security programs for fiscal year 1979, and for 
other purposes. The budgetary impact of this measure is indicated in 
the discussion of the President's budget. 

S. 419, FEDERAL OIL SHALE COMMERCIALIZATION TEST ACT 

A bill to encourage the commercial demonstration of above ground 
and in-situ oil shale technologies and test their commercial, environ- 
mental, and social viability. The potential budgetarv impact in fiscal 
year 1979 is $142 million. 

S. 743, THE PETROLEUM MARKETING PRACTICES ACT 

The Petroleum Marketing Practices Act is presently pending in 
markup and will in all likelihood be reported by the Committee early 
in the second session of the 95th Congress. A companion House bill, 
H.R. 130, has also been referred to the committee. 

Title I of S. 743 establishes minimum procedures designed to pro- 
tect independent dealers who market gasoline and diesel fuel from 
arbitrary termination of lease arrangements with refiners or distrib- 
utors who supply them with petroleum products. Title II establishes 
octane labeling requirements for establishments engaged in the sale 
of motor gasoline to permit consumers to better choose the level of 
fuel performance required by their automobile. 

Title III of S. 743 contains provisions prohibiting discriminatory 
pricing of motor fuel supplied to independent dealers by suppliers 
who also operate their own direct marketing outlets. 

Titles I and III of this legislation are largely self-enforcing and 
therefore would not require significant budgetary commitment in 
fiscal year 1979 or in subsequent years. Title II directs the Federal 
Trade Commission and the Environmental Protection Agency to 
perform certain tasks relating to the testing and disclosure of gasoline 
octane. It is likely that these tasks will necessitate modest expenditures 
by these agencies in fiscal year 1979 and subsequent fiscal years. 

S. , REFINERY CONSTRUCTION AND CONVERSION ACT 

Under the authority and direction of the Emergency Petroleum 
Allocation Act of 1973, as amended, the Federal Energy Administra- 
tion (FEA) maintained a system of price and allocation controls on 
sales of crude oil and certain refined petroleum products. This 
authority is now exercised by the Economic Regulatory Administra- 
tion of the Department of Energy. 

As part of the program, a complex system of crude oil entitlements 
is used to approximately equalize refiner feedstock costs. These regula- 
tions, and the additional uses to which the FEA and the Department 
have put the benefits under the entitlements program, have operated 
to discourage the construction of new domestic refinery capacity. The 
enactment of the crude oil equalization tax proposed by the adminis- 



76 

tration and currently pending in House-Senate conference would 
further lessen the economic attractiveness of domestic refiners. These 
programs and trends in Federal policy have contributed to the failure 
of domestic refining capacity to meet rising demand, and refined 
products imports have risen. 

In addition, the economics of investments in existing refineries to 
upgrade the capability of this capacity to refine heavier, high-sulphur 
oil have been quite unfavorable under Federal controls. However, 
it is precisely this type of oil which is increasingly available at dis- 
counted prices on the world market, from the substantial U.S. dis- 
covery in Alaska and from the preponderance of remaining domestic 
reserves. 

Legislation to encourage both the construction of new refinen r ca- 
pacity and the renovation of existing capacity to handle lower quality 
crude oils was postponed during 1977 in order to deal with the Presi- 
dent's energy proposals. It is anticipated that such legislation may be 
considered by the committee during 1978. The budget implications 
of such a program could include up to $250 million in new budget 
authority and authority to guarantee up to $500 million in loans. 

S. 2080, FEDERAL COLUMBIA RIVER POWER SYSTEM 

A bill to make certain revenues of the Federal Columbia River 
Power System available for maximum electric efficiency for future 
essential power supply, to promote conservation, and for other pur- 
poses. The budgetary impacts of this measure would primarily con- 
sist of its long-term impacts upon revenues to the treasury from the 
sale of electric energy from the Federal Columbia River Power System. 
Xo direct fiscal year 1979 impact is probable. 

S. 2249, SOUTHWESTERN POWER ADMINISTRATION 

A bill to clarify and reaffirm the intent of Congress with respect to 
the transmission and sale of electric power and energy generated or 
purchased in the southwestern power area. The bill would require that 
power marketed by the Southwestern Power Administration be sold 
without discrimination between customers. 

If enacted the bill would require the Southwestern Power System 
to incorporate this change into its rate structure by raising rates to 
all customers to make up for the loss in revenue from one customer. 
Because such a proposed rate increase would take approximately 18 
months before approval, there would be a budget impact in 1978 of 
$1.3 million and in 1979 of $2.6 million which represents the drop in 
payments to the Treasury on its debts by Southwestern Power. How- 
ever, there would be no net cost to the government since rates would 
be restructured to regain these amounts in later years and any kecline 
in the amount repaid in 1978 and 1979 would be recovered eventually. 

S. , FEDERAL POWER MARKETING REVOLVING FUND ACT 

A bill to provide for a revolving fund for Western Area Power Ad- 
ministration, Southwestern Power Administration, Southeastern 
Power Administration, and Alaska Power Administration (to be pro- 



77 

posed by the Administration). The bill would have no fiscal year 1979 
budget impact, but would have long-term impacts upon appropria- 
tions for and revenues from the operations of these Federal electric 
power systems. 

S. 2533, THE GASOHOL MOTOR FUEL ACT OF 1978 

Gasohol as a substitute for imported petroleum supplies is widely 
supported in both Houses of the Congress. Legislation pertaining to 
the use of alcohols from coal and renewable resources as a gasoline 
additive is almost certain to pass in the 2d session of the 95th Con- 
gress. More than twenty Senators have either introduced legislation 
or contemplate legislative proposal. The specific details of the pro- 
gram that will be finally enacted are difficult to predict. However, 
the Gasohol Motor Fuel Act of 1978 (S. 2533) is representative. 

The bill would establish a national requirement that gasoline sold 
for use in motor vehicles must contain on the average a specified 
percentage of alcohol made from renewable resources. The Secretary 
of DOE would be required to conduct a 6-month study on the devel- 
opment of an alcohol motor fuel industry, to set national production 
goals for the production of alcohol for blending in motor fuel, and to 
prescribe requirements regarding the minimum percentage of alcohol 
that must be contained on the average in motor fuel. 

An authorization of $1 million for fiscal year 1979 is provided. 

The Budget Committee should anticipate budgetary impacts 
beyond the amounts requested in the fiscal year 1979 DOE author- 
ization as part of the biomass program. The budget resolution should 
provide for this eventuality in the Energy function. 

S. 2962 (TITLE VI) BASIS FOR GOVERNMENT CHARGE FOR URANIUM 
ENRICHMENT SERVICES 

S. 2692, Department of Energy Civilian Program Authorization 
Act for fiscal year 1979 in Title VI seeks to amend the Atomic Energy 
Act of 1954, as amended, to permit a commercial pricing of uranium 
enrichment services. The President's requested budget contemplates 
revenues of $163 million from enactment of this legislative proposal. 
However, a similar proposal submitted by the Administration in its 
fiscal year 1978 authorization request was not enacted by the Con- 
gress, therefore it is unclear whether this resubmitted proposal will be 
approved during the 2d session of the 95th Congress. The Budget 
Committee should take cognizance of the possibility of a short fall 
in revenues of $163 million which would result if the authority is not 
granted. This would necessitate a corresponding increase in the 
Department of Energy appropriations for fiscal year 1979. 

S. , URANIUM ENRICHMENT FUND 

The committee understands that in the near future the Adminis- 
tration will recommend establishment of a revolving fund regarding 
uranium enrichment services and revenues. The proposal would 
parallel a government corporation type of operation. The prospect of 
Congressional action on such a proposal is unclear. The budgetary 

24-427—78 7 



78 

impact is even less clear because no specific details with regard to the 
proposal were available when this report was prepared. However, an 
initial fiscal year 1979 appropriation may be required to establish the 
revolving fund, depending upon the specific details of the proposal. 

NUCLEAR WASTE MANAGEMENT 

There is a high degree of interest on the part of the Members in both 
the Senate and the House of Representatives in establishing an aggres- 
sive program to solve the nuclear waste problems associated with both 
military and civilian nuclear power programs. A number of legislative 
proposals have been introduced, including S. 63 and S. 2189. A com- 
prehensive review of the nuclear waste problem will be completed by 
the DOE within the next few weeks. The prospect for early Congres- 
sional attention to resolution of the spent fuel problem for domestic 
nuclear power plants seems likely. Such legislation could require the 
lease or purchase of new or existing facilities for storage of spent fuel. 
While the specific budgetary impact of such legislation for the DOE 
waste management activities is unclear, it may require an additional 
$30 to $50 million in fiscal year 1979. 

S. , NUCLEAR SITING AND LICENSING ACT 



The Administration will shortly submit to the Congress a Nuclear 
Siting and Licensing Act which may include provisions establishing 
cost-sharing programs with states or regional organizations to estab- 
lish site planning activities for energy facilities. The anticipated 
specific fiscal year 1979 budget authority to initiate this program is 
not available to this committee at this time. However, such legislation 
would receive high priority consideration. Congressional approval of 
such cost-sharing programs by the Department of Energy with the 
States could require adjustments in the Energy function ceiling to 
embrace the required funding. 

URANIUM MILL TAILINGS 

The historic activities in uranium mining and milling in the West 
have resulted in uranium mill tailings which are of concern to Members 
from the repository states. Legislative initiatives to deal with these 
disposal sites in an environmentally sound manner may be approved 
during this session of Congress. Preliminary information indicates 
that a 5-year $80 million program would be required if the appropriate 
legislative authorization were enacted for the DOE to initiate decon- 
tamination activities. 

S. , WIND ENERGY DEMONSTRATION AND COMMERCIALIZATION 

ACT OF 1978 

A bill to authorize $2.5 billion in new authorizations for the Depart- 
ment of Energy to support a 10-year wind demonstration and com- 
mercialization program. Of this $70 million would be required for 
activities in fiscal year 1979. 



FEDERAL COAL LEASING AMENDMENTS 



A bill to amend the coal leasing provisions of the Mineral Lands 
Leasing Act. Not yet introduced. The bill would have little or no 
budget impact in fiscal year 1979. 



79 

H.R. 10601, SOLAR POWER SATELLITE RESEARCH, DEVELOPMENT, 
AND DEMONSTRATION ACT OF 1978 

Solar power satellite systems are receiving substantial Congres- 
sional review. In the House of Representatives, H.R. 10601, the Solar 
Power Satellite Research, Development, and Demonstration Program 
Act of 1978 authorizes a total of $25 million in fiscal year 1979 to begin 
a program leading to eventual insertion into earth orbit of a small 
satellite to test the technical feasibility of beaming electrical energy 
back to the earth from a satellite. This proposal enjoys bipartisan 
support in the House of Representatives and has attracted attention 
in the Senate as well. Because such legislation may be enacted by the 
Congress in this session, it should be considered in establishing Energy 
Function budgetary ceilings. 

H.R. 10830, SOLAR PHOTOVOLTAIC ENERGY RESEARCH, DEVELOPMENT, 
AND DEMONSTRATION ACT 

In the House of Representatives, The Solar Photovoltaic Energy 
Research, Development and Demonstration Act (H.R. 10830) has 
been introduced and adopted as a separate title to the Department of 
Energy authorization bill for fiscal year 1979 (H.R. 10969). This 
action was taken by the Subcommittee on Advanced Energy Tech- 
nologies and Energy Conservation Research, Development and Dem- 
onstration of the House Science and Technology Committee. This 
bill contemplates a 10-year program leading to a large reduction in 
the cost of photovoltaic solar cells at the conclusion of the decade. 
An authorization of $1.5 billion is provided for the entire program, 
with $125 million authorized in fiscal }"ear 1979 (which is to include 
any fiscal year 1979 funding for a similar program contained in the 
National Energy Act. Whether the Senate approves a similar bill or 
not the Budget Committee should take cognizance of this major 
initiative which may be accepted in Conference as part of the fiscal 
year 1979 DOE authorization bill, and would need to be reflected in 
Energy Function budgetary ceilings. 

S. , COMPREHENSIVE STATE ENERGY PROGRAM 



The committee understands that the administration intends to 
propose legislation which would consolidate existing State grant 
programs which support energy conservation efforts by State govern- 
ment. The programs affected are present!}- authorized by the Energy 
Policy and Conservation Act, the Energy Conservation and Produc- 
tion Act and the National Energy Extension Service Act. The recom- 
mended fiscal year 1979 authorization levels for these programs are 
discussed elsewhere in this report. The committee anticipates no 
additional fiscal year 1979 budgetary impact above these levels as a 
result of enactment of this legislation. However, since the administra- 
tion's actual legislative proposal has not been made available to the 
committee this estimate must necessarily be tentative at this time. 

B. Natural Resources and Environment 

WILDERNESS, WILD AND SCENIC RIVERS, AND TRAILS 

In May of 1977, President Carter transmitted his environmental 
message to the Congress. Included in that proposal are a number of 
measures to designate lands for inclusion in the national wilderness, 



80 

wild and scenic rivers or trails system, or to study lands for possible 
inclusion in one of those systems. The committee will consider several 
components of this package during the next year. Costs associated 
with such proposals are relatively insignificant and are included 
within various broader budget categories for the particular agency 
(i.e., Forest Service, Bureau of Land Management, Heritage Con- 
servation and Recreation Service, etc.) or the Land and Water 
Conservation Fund. 

H.R. 3813, REDWOOD NATIONAL PARK EXTENSION 

Legislation to expand Redwood National Park by some 48,000 
acres has passed both Houses of Congress and awaits Presidential 
approval. Should this legislation be enacted into law, it is estimated 
that the acquisition cost for these lands will be approximately $350 
million. While it is not clear at this time whether the legislation will 
be funded through the Land and Water Conservation Fund or general 
revenues, a fiscal year 1979 budget impact of at least $150 million 
may be anticipated if this legislation, as seems probable, is approved. 

HOUSE OMNIBUS PARK LEGISLATION 

The House Interior and Insular Affairs Committee is currently 
considering an omnibus park proposal designed primarily to take 
care of a number of National Park Service "housekeeping" matters 
such as ceiling increases for land acquisition and development in 
existing units of the national park system, as well as some minor 
boundary modifications for existing units. The committee notes that 
the National Park Service has included funds for these ceiling in- 
creases and boundary modifications in their fiscal year 1979 budget. 
It is likely that the Energy and Natural Resources Committee will 
act on this proposal this year as passage of these measures is often 
critical to the protection and enhancement of existing units of the 
national park system. 

CREATION OF PARKS AND RECREATION AREAS 

The committee wishes to note that inasmuch as land acquisition 
costs for units of the park system and other Federal recreation 
land acquisitions are funded from the Land and Water Conservation 
Fund, enactment of legislation creating new park units will not 
affect budget levels. In this regard, the committee expects to consider 
a number of such measures during this year, including proposals to 
establish the Jean Lafitte and San Antonio Missions National Histori- 
cal Parks, the Chattahoochee River National Recreation Area, the 
Lowell National Cultural Park, the Jackson Hole Scenic Area and 
the Long Island Sound Trust proposal. 

S. 975, PARK TRANSPORTATION ACT 

This measure would provide the Secretary of the Interior with 
the authority to plan, develop, and, in limited instances, provide for 
alternatives to the automobile for access to units of the national 
park system. In developing alternative transportation projects, 
the Secretary would have to consider their environmental energy, 
recreational, and social impacts. He would be required to consult 
with public and private transportation authorities and carriers, 



81 

other Federal agencies, and local citizens groups. Public meetings 
would be held near the affected park prior to the implementation of 
any transportation project. 

As introduced, the legislation authorizes $6 million over a three- 
year peiiod to cany out the purpose of the Act. The authorization 
level for fiscal year 1979 would be $1 million. 

5. 2566, PENNSYLVANIA AVENUE DEVELOPMENT CORPORATION 

The Pennsylvania Avenue Development Corporation was estab- 
lished by Congress to develop and implement a plan for the rehabili- 
tation of Pennsylvania Avenue. The plan went into effect following 
Congressional review in May, 1975. The Corporation will need an 
increase in its borrowing authority from the present $50 million to 
$200 million and in appropriations from the present authorized level 
of $38 million to $130 million to achieve the plan. While outlays will 
be spread over a period of time (until 1990), the budget authority 
will enable the Corporation to attract the private investment neces- 
sary to accomplish the objectives of the Act. 

S. 2699, ARCHEOLOGICAL INVESTIGATIONS AND SALVAGE PROGRAM 

The Archeological Investigations and Salvage Program expires 
at the end of fiscal year 1978. The committee expects to act on S. 2699 
this session. The measure would provide a 5-year authorization for 
the program, with a $5.3 million authorization for fiscal year 1979. 

S. 88, MINERAL KING 

Legislation to add the Mineral King Valley to Sequoia National 
Park has been pending before Congress for several years. A Mineral 
King proposal has been reported favorably from the House Parks and 
Recreation Subcommittee and may be included in the House omnibus 
bill. S. 88, the bill currently pending before the committee, would 
authorize $5.5 million for land acquisition. These funds would be made 
available from the Land and Water Conservation Fund. Depending 
on House action, this measure may well be enacted during the next 
year. 

S. , NATIONAL HERITAGE 

As discussed under the purpose of the Heritage Conservation and 
Recreation Service, legislation is needed to carry out many of the 
activities envisioned in the National Heritage proposal. To date, this 
proposal has not been transmitted to the Congress and potential 
budget impact for fiscal year 1979 is unclear. 

OFFICE OF SURFACE MINING RECLAMATION AND^ENFORCEMENT 
AUTHORIZATION 

The Department of the Interior has proposed legislation providing 
an authorization of $19,068,000 to the Office of Surface Mining Recla- 
mation and Enforcement covering State and Federal enforcement of 
the interim regulations published in December 1977. It is necessary 



82 

to raise the authorization level provided in the Surface Mining Control 
and Reclamation Act ($10,000,000) because of an increase in estimated 
costs and personnel needed to provide State regulatory program 
grants for interim enforcement by the States during the period prior 
to approval of the State permanent regulatory programs, and an 
increase in estimated costs and personnel required for Federal inspec- 
tion during the same period. 

The OSMRE budget request is predicated upon the assumption 
that legislation authorizing the additional $9,068,000 needed for the 
State grants and Federal regulation will be approved. The committee 
expects to consider this legislation, which has been referred to it and 
to act favorably at the appropriate time. 

S. 2463, AUTHORIZATION FOR SURFACE MINING CONTROL AND RECLA- 
MATION ACT, SECTION 507(C) 

A bill to increase the authorization for the small operator assistance 
program of the Office of Surface Mining Reclamation and Enforce- 
ment for fiscal year 1979 from $10 million authorized in section 712(b) 
of the Act to $25 million. Authorization for fiscal year 1980 would 
also be $25 million and for each fiscal year for each of the thirteen 
years remaining in the abandoned Mine Reclamation Fund collection 
period the authorization would amount to $15 million. 

S. 2672, SMALL OPERATOR ASSISTANCE 

S. 2672 would increase the authorization of funds for small operator 
assistance under the abandoned Mine Reclamation Fund from $10 
million to $25 million in each of fiscal years 1979 and 1980 and $15 
million in the remaining years of the fund collection period. 

S. 2672, AUTHORIZATION FOR SURFACE MINING CONTROL AND RECLAMA- 
TION ACT, SECTION 712(a) 

Section 712(b) authorizes $10 million for fiscal year 1978 and $10 
million for each of the succeeding fiscal years to cover costs of State 
and Federal enforcement of the interim environmental protection 
performance standards of the Act. 

Because of an increase in estimated costs and personnel needed to 
provide State regulatory program grants for interim enforcement by 
the States during the period prior to approval of the State permanent 
regulatory programs, and because of an increase in estimated costs 
and personnel required for Federal inspection during the same period, 
additional authorization legislation has been proposed by the Depart- 
ment for $19,068,000, up from $10,000,000. 

Information received by the Office from the States indicates that 
approximately 300 man years of additional capability will be needed 
to enforce Federal environmental protection performance standards. 
This equates to grant requirements of $7,500,000 as shown in the 
budget request for fiscal year 1979. Also, because the Act requires 
seni-annual Federal inspection, pins inspections responding to citizen 
complaints or successive violations that show up in State inspection 
reports, the total Federal workload has now been estimated to be 
20,000 Federal inspections in fiscal year 1979 at a cost of $11,568,000. 
Taken together, these total $19,068,000. 



83 

The two additional amounts have been incorporated into the fiscal 
year 1979 estimate line items for State regulatory program grants 
and for Federal regulatory programs respectively. 

The OSMRE budget request is predicated upon the assumption 
that legislation authorizing the additional $19,068,000 needed for the 
State grants and Federal regulation will be approved. 

S. 9, OUTER CONTINENTAL SHELF LANDS ACT AMENDMENTS 

A bill to establish a policy for the management of oil and natural 
gas in the Outer Continental Shelf; to protect the marine and coastal 
environment; to amend the Outer Continental Shelf Lands Act; 
and for other purposes. 

S. 2234, QUADRENNIAL BUREAU OF LAND MANAGEMENT AUTHORIZATION 

Section 318 of the Federal Land Policy and Management Act of 
1976 provides that no future appropriations are to occur unless the 
sums are expressly authorized by the Congress on a four year cycle. 
The first quadrennial authorization is required for the fiscal year 
1979-1982 period. The Secretar}* of the Interior was directed to for- 
ward by May 15, 1977, his estimates of the funding the Bureau could 
efficiently and effectively use. These estimates were to be made 
without regard to budgetary guidelines or limitations. The Secretary's 
proposal, S. 2234, was transmitted on September 26, 1977. 

Hearings have been completed on S. 2234 and the Committee 
expects to report it in April. The House Indian Affairs and Public 
Lands Subcommittee has reported the counterpart measure H.R. 
10787 to the full Interior Committee. 

Most of this committee's recommendations for the fiscal year 1979 
budget request for the BLM correspond to the Secretary's recom- 
mendations. Set forth below are the additions to the President's 
proposed 1979 budget bv appropriation which S. 2234 would require 
in fiscal years 1979 to 1982. 

BUREAU OF LAND MANAGEMENT— QUADRENNIAL AUTHORIZATION 

[Budget authority in millions of dollars] 





President's 


Increases 


above President': 


> 1979 budget level 


Appropriation 


1979 


1979 


1980 


1981 1982 


Management of lands and resources ' 

Acquisition, construction, and maintenance 

Payment in lieu of taxes 


275 

8 

105 


45 
2 

45" 


75 
4 
3 

50 


105 135 
7 9 
6 9 


Mineral impact loan assistance 





57 65 


Total 


398 


92 


132 


175 218 



1 Includes increases of $30,000,000 per year to cover change in financing of emergency firefighting. 

2 $40,000,000 to be requested following legislative change in interest rate. 

H.R. 9757, GRAZING FEE MORATORIUM ACT OF 1978 

This measure would impose a moratorium on any increases in fees 
for grazing livestock on BLM or Forest Service lands during the 1978 
grazing season. On October 21, 1977, pursuant to section 401(a) 



84 

of the Federal Land Policy and Management Act of 1976, the Secre- 
taries of the Interior and Agriculture submitted to the Congress 
their report, entitled "Study of Fees for Grazing Livestock on 
Federal Lands," which proposes a raise in grazing fees based on a 
formula somewhat different than the Udall formula used prior to 
1977. The purpose of II. R. 9757 is to provide the Congress additional 
time to analyze the Secretaries' proposal. 

II. R. 9757 has passed the House of Representatives and is on this 
committee's markup calendar. Its enactment this month or next is 
highly likely. 

As noted elsewhere, the moratorium would reduce the funds 
available to the BLM Range Improvement Fund in fiscal year 1979 
budget category by $1,728,000 and the fiscal year 1979 Range Im- 
provement account of the Forest Service by $1,174,000. To restore 
this likely reduction, the Committee recommends adding those 
figures to the range management budget item of the fiscal year 1979 
BLM Management of Lands and Resources appropriation and the 
rangeland management budget item of the fiscal year 1979 Forest 
Protection and Utilization appropriation of the Forest Service. 

H.R. 1074, NATIONAL RANGELANDS REHABILITATION AND MAINTENANCE 
ACT, AND S. 2475, PUBLIC GRAZING LANDS IMPROVEMENT ACT 

Last Congress, the committee favorably reported by unanimous 
voice vote and the Senate passed by voice vote S. 2555, the National 
Rangelands Policy Act of 1975. No action was taken in the House. 
This legislation would have required the Secretary of the Interior to 
develop a specific plan within five years that would bring the nation's 
public range lands to full productivity in 30 years. The legislation 
authorized SS95.5 million over the 30 year period to develop the 
comprehensive plan and effect the necessary range improvement-. 

This legislation was introduced in response to the previously- 
mentioned 197") "Range Condition Report" submitted to the Senate 
Appropriation- Committee. The report concluded that much of the 
1()() million acre- of iangeland owned by the Federal government is in 
poor and steadily declining condition. The Bureau of Land Manage- 
ment estimates that the productive capability of these lands will he 
reduced by one-fourth within 25 years unless some positive action is 
taken. A recent GAO study, dated July 5, 1977, and titled "Public 
Rangelands Continue to Deteriorate", concurs in and reemphasizes 
the message of the BLM report. 

While provisions in the Federal Land Policy and Management Act 
raised from 25 to 50 percent the portion of all moneys received by the 
U.S. a- fees for grazing domestic livestock on public lands which must 
be made available for on-t he-ground range improvements, that Act 
;in<l the modest increases in renewable resources proposed in the 
Quadrennial BLM Authorization bill (S. 2234) will provide only a 
small portion of the funding necessary to meet the goal of rehabilita- 
tion of the range within 30 years (cost $895.5 million). Furthermore, 
the Am does not set forth any such goal and does not Bpeak to the 

quest ion of rehabilitation. 

A comprehensive range bill (S. 24.75; H.R. L0587) baa been intro- 
duced in both the House and the Senate and the House Indian Affairs 



85 

and Public Lands Subcommittee has scheduled hearings on it- bill; 
Those comprehensive bills provide for a 20-year range rehabilitation 
program totalling $350,000,000, $15,000,000 additional in each of the 

first four fiscal years 1979-82. Given this high level of legislative 
activity, passage of a bill containing a range rehabilitation program 

is likely. 
The program's likely budgetary effects would be to raise the range 

management budget item (Management of Lands and Resources 
appropriation) of the BLM by the following amount-: 

Fiscal year 1979, +$10,000,000; fiscal year 1980, +$14,500,000; 
fiscal year 1981, +$19,000,000; fiscal year 1982, +$23,500,000, and 
fiscal year 1983, +$24,000,000. 

MINERAL IMPACT LOAN LEGISLATION 

Section 317(c) of the Federal Land Policy and Management Act 
establishes a program to provide loans to State and local governments 
which will be required to increase their expenditures to mitigate 
adverse, social, economy, and environmental impacts from mineral 
leasing on public lands. The purpose of the provision is to ensure that 
these governments will have capability to plan and act ahead of these 
impacts and will not be faced with the necessity of waiting for their 
share of Federal leasing monies to simply react to those impact-. 

President Carter proposed a $40 million addition to President Ford's 
fiscal year 1978 budget request in order to fund this program. He 
conditioned it, however, on the enactment of legislation to raise the 
loan interest rate above the 3 percent provided in FLPMA. On 
January 31, 1977, Senators Metcalf and Haskell, Chairmen of the 
relevant subcommittees, and Senator Hansen, ranking minority mem- 
ber of the committee, wrote Interior Secretary Andrus pledging their 
support for the enactment of such an amendment to FLPMA. The 
Administration's proposal was submitted on August 31, 1977. Although 
the committee is not prepared to render its support for any specific 
provision of the Administration's proposal, it does expect to report 
legislation which will raise the interest rate. 

Although the President did not insert any funds in the fiscal year 
1979 budget, thus treating the impact loan program as a new legisla- 
tive item, the committee does not regard it as such; the program was 
established by FLPMA. As the legislation will likely be passed, how- 
ever, the issue will be made moot and funding will be required whether 
it is regarded as an old or new program. The budget effect would be to 
add the following in a new Bureau of Land Management budget 
categorv: 

Fiscal 3^ear 1979, +$40,000,000; fiscal vear 1980, +$50,000,000; 
fiscal year 1981, +$57,000,000; fiscal vear 1982, +$65,000,000; and 
fiscal year 1983, +$70,000,000. 

S. 1820, NATURAL DIVERSITY ACT 

Both Houses have completed hearings on bills to declare, as a na- 
tional goal, preservation of America's natural diversity, including 
individual species of plants and animals, terrestrial and aquatic com- 
munity types, geological features and other important biological and 



86 

ecological phenomena; and to assist States and Federal land manage- 
ment agencies to develop data mangement systems and programs to 
locate, classify, and maintain sufficient elements of such natural 
diversity. The legislation would permit the establishment nationwide 
of programs which now exist, through the assistance of the Nature 
Conservancy, in eleven States. The budget effect would be to increase 
the Department of the Interior's budget as follows : 

Fiscal year 1979, +$91,000,000; fiscal year 1980, +$141,000,000; 
fiscal year 1981, +$141,000,000; fiscal year 1982, +$141,000,000; and 
fiscal year 1983, +$141,000,000. 

ALASKA NATIONAL INTEREST LANDS LEGISLATION 

The Congress will likely take action on the Alaska National Interest 
lands legislation this session. Pending before the committee are six 
bills— S. 499, S. 500, S. 1500, S. 1546, S. 1787, and S. 2465— to desig- 
nate from 26 million to 116 million acres of Federal land in Alaska as 
components of the four conservation systems — National Park System, 
National Wildlife Refuge System, National Wild and Scenic River 
System, and National Forest System. Most of the lands to be desig- 
nated are withdrawn under section 17(d) of the Alaska Native Claims 
Settlement Act until December 18, 1978. Both Houses are expected to 
complete action on the legislation before expiration of the with- 
drawal. The Subcommittee on Oversight and Alaska lands has reported 
a bill (H.R. 39) to the full House Interior Committee, which is now in 
markup on the measure. This committee expects to complete hearings 
on the legislation in April and begin markup in May. 

As the land is presently withdrawn, the designation of the lands by 
the legislation would not have any significant budgetary impact. The 
bills have no authorization. 

S. 1338, FOREST SERVICE SKI PERMIT BILL 

This committee has twice reported and the Senate has twice passed 
a bill to reform the policies and procedures followed by the Forest 
Service in issuing permits for concessioners to use national forest land 
in the conduct of their business. The bill (this Congress' version, 
S. 1338 was passed on July 13, 1977) is known as the "ski permit" bill 
because the largest concessioners which have the greatest impact on 
the en\ironment and social services and to which many of the provi- 
sions of the bill are specifically addressed are ski resorts. S. 1338 would 
replace the 1897 and 1915 laws now employed by the agency for per- 
mitting purposes. It would require more careful analysis of environ- 
mental impacts, the sharing of a greater percentage of fee revenues 
with localities, more sophisticated agency planning, and greater par- 
ticipation in that planning by State and local governments. The costs 
of the. concessioner licensing program would be only marginally 
greater. However, as the bill would increase from 25 to 50 percent the 
share of permit fees paid to the local governments, Federal revenues 
would be reduced as follows: 

Fiscal vear 1979, -$2,000,000; fiscal year 1980, -$2,200,000; fiscal 
year 1981, —$2,400,000; fiscal year 1982, —$2,600,000, and fiscal 
year 1983, -$2,800,000. 



87 

S. 2053, DEEP SEABED MINERALS RESOURCES ACT 

Enactment of a bill to promote the orderly and environmentally 
sound exploration for and commercial recovery of ferromanganese 
nodules form the deep seabed is a distinct possibility this session. 
Three committees of the House have reported S. 3350 and this com- 
mittee has placed a comparable bill, S. 2053, on the markup calendar. 
Last Congress this committee reported similar legislation but no 
further action was taken largely because of Administration opposition 
based on the concern that enactment of the measure would jeopardize 
U.S. interests in the U.N. Law of the Sea Conference negotiations. 
However, the position of this Administration is favorable to passage 
of the legislation. 

The bill would establish a Federal program to grant licenses for 
exploration and permits for commercial recovery to U.S. citizens. The 
U.S. could enter into agreements with ''reciprocating states" to 
mutally respect each other's deep seabed mining program. The 
program would be interim in nature pending ratification of a Law of 
the Sea treaty by the United States. 

The budget effect would be to add the following to the budget of 
either the Department of the Interior or the Department of Commerce : 
fiscal year 1979, + $700,000; fiscal year 1980, + 835,600,000; fiscal vear 
1981, + $155,600,000; fiscal A'ear 1982, +$378, 700, 000; and fiscal vear 
1983, +$700,700,000. 

S. 74, PAYMENTS IX LIEU OF TAXES ACT AMENDMENT 

The committee will consider numerous bills to amend the Pay- 
men ts-In-Lieu-of Taxes Act, (Public Law 94-656) to add additional 
Federal lands to the lands eligible for PILT payments: semiactive or 
inactive army installations (S. 74), Indian trust and administrative 
lands (S. 1168), national wildlife refuge system lands and lands 
acquired for national parks or wilderness within local government 
boundaries in Alaska (S. 2558). As a complicated formula is used to 
determine the amount of funds local governments can receive, budget 
estimates are not available on these bills. The possible budget effect 
could be to add the following to the payments-in-lieu of taxes budget 
category of the Bureau of Land Management: 

Fiscal vear 1979, + $2, 500,000: fiscal year 1980, + 82, 500.000; fiscal 
vear 1981,+$2, 500,000; fiscal vear 1982~, + $2,500,000; and fiscal vear 
1983, +$2,500,000. 

H.R. 1609, THE COAL SLURRY PIPELINE BILL 

Numerous bills relating to coal slurry pipelines have been intro- 
duced in both Houses. Two basic approaches are under consideration: 
In one approach the Federal government would grant the power of 
eminent domain to the pipelines provided they secure a certificate 
of public convenience and necessity subject to typical federal common 
carrier requirements. In the second approach, the Federal government 
would not grant eminent domain power but slurry lines would be 
designated as common carriers and conflicts over rights-of-way 
between slurry lines and railroads would be resolved by the Interstate 
Commerce Commission. 



Xo action was taken on the bills last session in anticipation of the 
publication of the Office of Technology Assessment study "A Techno- 
logy Assessment of Coal Slurry Pipelines". With publication of the 
draft of the study last month, legislative activity picked up, with two 
Committees in the House of Representatives holding hearings on the 
legislation. Following the hearings, the House Interior Committee 
ordered reported H.R. 1609 which adopts the first approach to per- 
mitting slurry lines. The Senate passed a somewhat similar bill (S. 
3879) in 1974, but will likely await House action before initiating 
consideration of the legislation this session. 

The budget effect of the legislation would be as follows: 

Fiscal year 1979, -f $1,500,000; fiscal year 1980, +$1,500,000; fiscal 

year 1981, +$1,000,000; fiscal year 1982, +$1,000,000; and fiscal year 

1983, +$1,000,000. 

MINING LAW REFORM BILLS 

Three bills to reform the Mining Law of 1872 are before the com- 
mittee: S. 1284 (Senator Metcalf), S. 2133 (Administration), and S. 
2210 (Senator McClure), Reform of the more than century old 
statutory base for the disposition of hardrock minerals on public 
lands was made a priority of the Carter Administration in the Presi- 
dent's 1977 Environmental Message to the Congress. Both S. 1248 
and S. 2133 would replace entirely the 1872 Mining Law and its 
location -patent system with a leasing system similar to that for coal, 
oil and gas and other 1920 Mineral Leasing Act minerals. S. 2210 
would refine the present location-patent system. Should the leasing 
alternative be chosen it would add the following to the Bureau of 
Land Management budget: 

Fiscal year 1979, +$15,000,000; fiscal year 1980, +$15,000,000; 
fiscal year 1981, +$15,000,000; fiscal year 1982, +$15,000,000; 
and fiscal year 1983, +$15,000,000. 

ANTICIPATED ADMINISTRATION PROPOSALS 

S. — , Legislation to increase the authorized ceiling for the San Luis 
Unit of the Central Valley Project in California. Fiscal year 1979 
budget authority: $18,800,000. 

S. — , Legislation to authorize the appropriation of funds to be used 
for the modification of existing dams for safety purposes. Fiscal year 
1979 budget authority: $3,000,000. 

S. — , Legislation to increase the authorized ceiling for the Colorado 
River Salinity Control Program. Fiscal year 1979 budget authority: 
$300,000. 

C. Other 

GUAM CONSTRUCTION 

The President has recommended new budget authority of $8,868 
million for construction of water service facilities on Guam. The neces- 
sary authorizing legislation has just been transmitted to the Congress. 
The committee in its comment No. 8 on the Guam authority has indi- 
cated its agreement and support for that level of funding with the 
Department's estimate of proper outlays of $3 million in fiscal year 



89 

1979. Guam has not as yet fully recovered from the damage caused by 
Typhoon Pamela is almost totally dependent on specific grants from 
the Federal Government for any large projects both basic operations 
and maintenance. 

GUAM HOSPITAL PURCHASE 

The Congress authorized $25 million in Section 205 of Public Law 
95-134 to meet the health care needs of Guam. Typhoon Pamela 
virtually destroyed the present Government of Guam facility, the 
Guam Memorial Hospital. Rather than renovating the existing fa- 
cility, the Government of Guam would prefer to purchase the Medical 
Center of the Marians, a fully equipped acute care facility which had 
been recently completed. Testimony before the committee indicated 
clearly that Guam cannot support two acute care facilities and that 
the purchase of the hospital was in the best interests of the people of 
Guam as well as in the National interest. Delays in requesting the 
necessary appropriations have increased the cost for the purchase of 
the hospital since both the Medical Center of the Marianas the Guam 
Memorial Hospital are unable to meet expenses so long as both are 
used for acute care treatment. The committee staff believes that the 
proper course of action is for the government of Guam to purchase the 
Medical Center of the Marianas and accordingly it will be necessary to 
authorize additional sums of between $5 and $10 million for that 
purpose. The necessary authorization has not as yet been transmitted 
by the Administration. 

VIRGIN ISLANDS HOSPITAL CONSTRUCTION 

Health studies in the Virgin Islands are virtually complete and are 
being reviewed by the Department and the Governor. The com- 
mittee anticipates that no significant change will be made in the 
basic recommendations of the stud} r and that the Department will 
seek funding in fiscal year 1979 to begin the construction of hospital 
facilities on St. Thomas and St. Croix together with a similar facility 
on St. Johns. 

The total estimated cost for hospital construction will be approxi- 
mately $52 million with outlays in fiscal year 1979 totaling approxi- 
mately $15 million. No authorization has been transmitted to the 
Congress as }^et pending a final review of the study, the Governor's 
recommendation, and clearance from the Office of Management and 
Budget. 

VIRGIN ISLANDS FUND 

The Virgin Islands is required to maintain a balanced budget. 
Conflicts between the Virgin Islands and the Administration over the 
requirement in the Virgin Islands Revised Organic Act that tax 
revenue collected by the United States on goods produced in the 
Virgin Islands be returned to the Virgin Islands as that provision 
relates to the Federal excise tax on petroleum products may result 
in a deficit for the Virgin Islands in fiscal 3'ear 1979 of as much as 
$30 million. Pending resolution of current litigation over the inter- 
pretation of that provision of the Revised Organic Act the Adminis- 
tration is unlikely to transmit the necessary authorization to cover 
the possible deficit in the Virgin Islands. 



90 

The committee, therefore, notes that it is possible that the Congress 
will have to consider legislation to authorize funds for the Virgin 
Islands either to cover their deficit or to reimburse them for their 
revenue mistakenly withheld by the United States. 

REHABILITATION OF BIKINI ATOLL 

A bill to authorize the Secretary of the Interior to complete the 
rehabilitation of Bikini Atoll. 

Recent radiological studies have disclosed unacceptably high 
levels of radiation on several islands in the Bikini Atoll. The U.S. 
has committed itself to rehabilitation of Bikini atoll in order to 
allow the inhabitants of the atoll to return to their homeland. 

The Bikinians were displaced during the late 1940's to enable the 
U.S. to conduct nuclear weapons tests. Estimates of additional 
rehabilitation costs at Bikini are approximately $15 million with 
$6 million in budget authority and $3 million in outlays in fiscal 
year 1979. 



Appendix 
List of accounts considered by the Senate Committee on Energy and Xatural Resources 

Function Treasury 
National defense (050) : account No. 

Navy construction (051) 17-1205 

Atomic energy defense activities (053) 89-0201 

General science, space, and technology (250) : 

NSF polar research program (251) : 

DOE general science and research 89-0202 

Energy (270) : 

Energy supply (271) : 

Petroleum reserves 11-5001 

GS PET 4 14-0805 

Coal research labs New 

DOE energv supply 89-0203 

DOE advances 89-8575 

DOE special foreign currency 89-0205 

DOE geothermal 89-0206 

Power marketing administrations: 

Southeast 89-0302 

Southwest 89-0303 

Alaska 89-0304 

Bonneville 89-4045 

Colorado — western Arizona 89-4452 

Construction 89-5068 

Emergency 89-5069 

Western power New 

Energy conservation (272): DOE energy conservation 89-0203 

Emergency energy preparedness (274) 89-0203 

Energy information, policy, and regulation (276) 89-0203 

Natural resources and environment (300): 

Water resources and power (301) : 

Bureau of Reclamation: 

Colorado River Basin salinity 14-0663 

Loan program 14-0667 

Colorado River Basin 14-4079 

Upper Colorado River storage 14-4081 

Emergency fund 14-5043 

Construction and rehabilitation 14-5061 

Operation and maintenance 14-5064 

General administrative 14-5065 

General investigations 14-5660 

Conservation and management (302) : 
Forest Service: 

Forest protection and utilization 12-1100 

Rangeland improvement fund 12-5207 

Youth Conservation Corps 12-1125 

Rights of way 12-5019 

Bureau of Land Management: 

Management of lands and resources 14-1109 

Acquisition, construction, and maintenance 14-1110 

Working capital fund 14-4525 

Recreation development and operation 14-5011 

Service charges 14-5017 

Range improvements fund 14-5132 

Oregon and California grant lands 14-5136 

(91) 



UNIVERSITY OF FLORIDA 

linn 

92 3 1262 09118 7475 

Function 

Natural resources and environment (300) — Continued Treasury 
Office of Surface Mine Reclamation and Enforcement: account Xo. 

Regulation and technology 14-0116 

Abandoned mine reclamation 14-1111 

Abandoned mine reclamation 14-8071 

Recreational resources (303) : 

Forest Service — construction 12-5009 

Bureau of Reclamation 14-0682 

Bureau of Outdoor Recreation 14-0682 

Preservation of historic property 14-1040 

Consolidated working fund 14-3910 

Planning development and operations 14-5006 

Land and water conservation fund 14-5005 

Historic preservation fund 14-5140 

National Park Service: 

Operations 14-1036 

Construction 14-1039 

Advisory Council on Historic Property 95-2300 

Corps of Engineers — use fees 96-5007 

Other natural resources (306) : 
Bureau of Mines: 

Mines and minerals 14-0959 

Consolidated working fund 14-3909 

Office of the Secretary: 

Salaries and expenses 14-0102 

Special foreign currency 14-0105 

Office of the Solicitor 14-0107 

Department operations 14-0108 

Geological Survey 14-0804 

Transportation (400) : 

Rail Transportation (401): Railroads rehabilitation New 

Water transportaion (403): State boating safety assistance 69-0246 

Community and regional development (450) : 
Community development (451): 

Pennsylvania Avenue Development Corporation: 

Salaries and expenses 42-0100 

Planning and development 42-0102 

Land acquisition 42-4084 

Area and regional development (452) : Alaska Planning Commission_48-0058/ 

48-8061 
General government (800) : 

General activities (804): GSA disposal of surplus real property 47-5253 

Other general government (806) : 

Administration of territories 14-0412 

Trust Territory of the Pacific Islands 14-0414 

Revenue and general purpose fiscal assistance (850) : 
Fiscal assistance (852) : 

BLM payments in lieu of taxes 14-1114 

BLM mineral impact loan assistance 14-1140 

o